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COINTURK NEWS > Stablecoin > Stablecoin Slowdown Squeezes Bitcoin Liquidity
Stablecoin

Stablecoin Slowdown Squeezes Bitcoin Liquidity

In Brief

  • Stablecoin growth has stalled, leading to renewed concerns over liquidity in crypto markets.

  • The slowdown is linked to capital outflows, affecting Bitcoin’s price performance and resilience.

  • Upcoming data will clarify how regulation and usage drive stablecoin and crypto sector growth.

Ömer Ergin
Ömer Ergin 2 months ago
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A recent stagnation in the stablecoin market is triggering fresh warnings of liquidity strain across the cryptocurrency ecosystem, including Bitcoin. Data shared by Matrixport Head of Research Markus Thielen reveals that daily net new issuance of stablecoins—measured on a rolling seven-day basis—has slipped into negative territory and is hovering near zero. This slump has coincided with a notable retreat in Bitcoin’s price from its latest highs, spotlighting the crucial relationship between stablecoin activity and broader crypto market dynamics.

Contents
Stablecoin Supply Growth Loses SteamUS Treasury Secretary Sets $3 Trillion Stablecoin AmbitionLiquidity Squeeze Puts Bitcoin on the Back Foot

Stablecoin Supply Growth Loses Steam

Stablecoins, widely recognized as a primary liquidity engine for cryptocurrencies, are facing a marked pause in expansion. The halt in new stablecoin minting, or worse, net outflows from the market, underscores a shift as capital flows out from crypto assets and returns to traditional currencies. Thielen cautions that, unless reversed, this liquidity crunch could exert sustained downward pressure on Bitcoin in the near term.

US Treasury Secretary Sets $3 Trillion Stablecoin Ambition

U.S. Treasury Secretary Scott Bessent recently projected that the dollar-denominated stablecoin market could, over time, balloon to a size of $3 trillion. Bessent, known for his previous executive tenure at Soros Fund Management, voiced a strong structural case for the digital dollar. Yet, despite the upbeat policy narrative, recent data paints a more cautious picture. Since late 2025, new stablecoin issuance has clearly slowed—and in some periods, contracted. The divergence between optimistic official forecasts and underlying market realities highlights that even regulatory advances may not catalyze growth unless genuine demand emerges.

Liquidity Squeeze Puts Bitcoin on the Back Foot

Charts tracking developments from November 2024 through February 2026 vividly illustrate the connection between Bitcoin’s price trajectory and stablecoin supply. While Bitcoin enjoyed robust gains throughout 2025, the subsequent cooling of stablecoin issuance marked the beginning of a pullback. Continued capital outflows from stablecoins would further weaken Bitcoin’s primary source of market liquidity and make extended rallies more elusive. Thielen expects market sentiment to remain cautious until clear signs of renewed capital inflows emerge.

Stablecoins have now transcended their experimental status within the crypto industry. According to a global study conducted by BVNK in partnership with YouGov and with contributions from Coinbase and Artemis, a growing number of people worldwide are embracing stablecoins for payments, shopping, and cross-border transactions, drawn by their speed and low costs.

“The stagnation in stablecoin growth is imposing an extra liquidity strain on Bitcoin in the near term. Until net inflows regain momentum, risk aversion may continue to dominate market psychology,” Thielen’s analysis indicates.

Shifting stablecoin flows are watched closely by the crypto ecosystem, as they serve as leading indicators for overall liquidity conditions and price discovery mechanisms. In the coming period, analysts expect both investors and market participants to monitor stablecoin dynamics with increased scrutiny.

The interplay between regulatory developments and greater adoption of stablecoins could set the course for the sector’s growth, though more concrete insights are expected as data surfaces over the next few months.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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Ömer Ergin 24 February, 2026 - 1:00 pm 24 February, 2026 - 1:00 pm
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