"Since the big dump in October, the issuance of stablecoins has reached 14 billion USD: Crypto Assets liquidity is returning."

#加密市场 正承受着强烈的卖压，市场情绪明显转空。# Bitcoin has fallen below 100,000 USD, marking the first time since May, while the performance of #altcoins has been even worse, continuing to weaken since early October. Despite the market being shrouded in uncertainty and waning sentiment, the inflow of funds has been steadily increasing—this may indicate that investors are preparing for the next round of "bottom-fishing accumulation phase."

According to Lookonchain data, since the market flash crash on October 10, #稳定币 发行量大幅增加，主要来自 # Tether (USDT) and #Circle have collectively issued over $14 billion in stablecoins.

Generally speaking, an increase in stablecoin supply is seen as a leading indicator of new capital entering the market. Historically, whenever there is a significant issuance of stablecoins, the market tends to rebound, as institutions and traders prepare to buy at lower levels.

Circle issues an additional 750 million USDC, with funds continuing to flow into the market.

The latest data from Lookonchain shows that Circle has just issued an additional 750 million USDC, further driving the trend of stablecoin inflows in recent weeks. Including Circle and Tether, the issuance of stablecoins has reached 14 billion dollars since the market fall at the beginning of October. Such dynamics usually indicate that a large amount of capital is being "parked" off-exchange, waiting to flow back into risk assets once sentiment improves.

However, even if liquidity continues to increase, market sentiment remains extremely fearful. Many traders and analysts warn that Bitcoin losing key psychological support (especially falling below $100,000) could indicate that a larger level of decline is unfolding. Currently, the divergence between capital inflows and weakening prices reflects a complex market environment: while capital is accumulating, it has not yet translated into significant buying pressure.

In other words, the supply of stablecoins is the "ammunition" needed for a rebound, but market fears prevent investors from firing easily. Whether the issuance of USDC will become the fuel for a rebound or merely used to cushion further falls depends on the upcoming macro environment and whether institutions will re-enter the market to absorb selling pressure.

USDC's share is rising: investors choose stability in panic.

Data shows that since mid-2024, the market share of USDC has been steadily increasing, currently approaching 2.33%, reaching a nearly one-year high. This indicates that against the backdrop of increasing market volatility and declining risk appetite, more investors are shifting their funds to "safe-haven positions" like USDC.

From a technical perspective, USDC's proportion has already broken through its 50-day and 100-day moving averages, which usually indicates that funds are shifting to a conservative mode. Historically, whenever the proportion of stablecoins breaks upward, it often means that the market is in an adjustment or oscillation phase, with funds flowing from high-risk assets to safer targets.

Circle's recent issuance of $750 million USDC, along with the increase in on-chain stablecoin balances, further demonstrates that the market is currently in a "defensive state." Although these funds have enhanced overall Liquidity, they also reflect that investors are generally cautious, waiting for clearer signals before reallocating into the market.

If the proportion of USDC continues to rise, it means that the market may still face downward pressure; however, once the proportion peaks and falls back, it could signal that the market is starting to reverse, with stablecoin reserves ready to flow back into Bitcoin and altcoins.

This article is for communication purposes only and does not constitute investment advice.