CryptoQuant: If stablecoin reserves continue to decline, crypto liquidity may further tighten

ChainCatcher news, CryptoQuant analysts published an article stating that the cryptocurrency market has been persistently sluggish recently, with weakened demand for Bitcoin and other major assets. Data shows that the continuous decline in Binance's stablecoin reserves (especially USDT and USDC) is a key reason for this trend. As a major source of market liquidity, the reduction in stablecoin reserves directly affects the purchasing power and market activity of cryptocurrencies. Since the beginning of 2025, Binance's USDT and USDC reserves have been decreasing weekly, indicating a decline in market purchasing power, limited inflow of new funds, and weakened buying pressure, which is consistent with Bitcoin's recent difficulty in breaking through key resistance levels. Analysts believe that if stablecoin reserves continue to decline, liquidity in the cryptocurrency market may further tighten, delaying any significant upward trends. Conversely, if reserves rebound, it may signal a resurgence of new fund inflows and demand recovery.