Why Can't Bitcoin's Rebound Last? Stablecoin Inflow Slowing Is the Key Factor

Warnings suggest Bitcoin's recent rebound may be a short-term technical correction rather than a trend reversal. The cryptocurrency market is losing long-term upward momentum as stablecoin supply growth has slowed, reducing liquidity. Analysts note that stablecoin inflow deceleration is the core variable: recent data shows USDT and USDC supply increases have significantly slowed, weakening bullish buying power. Historical patterns show Bitcoin rallies were fueled by stablecoin expansion, but current support is lacking. Past instances of stablecoin growth slowing coincided with Bitcoin price declines and repeated short-term rebounds followed by stronger sell pressure. Technical indicators also show weakness, with Bitcoin trading near $59,000 after breaking below key moving averages. Without sustained inflows, rebounds will likely depend more on speculative positions and short-covering rather than real demand, making prolonged rallies unlikely until liquidity improves and stablecoin supply growth resumes.