The stablecoin sector has seen a decline in its collective market cap, dropping from over $150 billion a year ago to $123.6 billion as of Aug 28. This is largely attributed to a liquidity crunch, with no new inflows and money leaving the crypto sector faster than it is coming in. This has put additional pressure on the Bitcoin price recovery, with a target of $25,000.On-chain analyst Mile Deutscher has blamed the lack of inflow into the sector for the decline in market cap, with no reason yet for retail investors to jump back in. This is further evidenced by the decrease in total value locked on DeFi platforms.The liquidity crunch is a global phenomenon, with central banks worldwide tightening their purse strings. The Bank of England, Federal Reserve, and People’s Bank of China have all reported a reduction in spending.The lack of funds is also affecting the potential Bitcoin pump, as retail investors lack the funds to spend on risk-on crypto. This is further compounded by the US Securities and Exchange Commission’s decision on the spot Bitcoin ETF from BlackRock, which is expected to be delayed until early September.
This News Article was automatically generated by Bob the Bot(AI)
This News Article was automatically generated by Bob the Bot(AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇩🇪 🇬🇧 🇨🇳 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 9 |
| People | Holger Zschaepitz, Mile Deutscher |
| Companies | US Securities and Exchange Commission, Federal Reserve, Bank of England, ARK Invest, European Central Bank, CoinMarketCap, BlackRock, People’s Bank of China, CryptoQuant |
| Currencies | us dollar, tether (usdt), euro, ethereum, bitcoin |
| Securities |
