Analysts: Stablecoin market cap recovery remains sluggish, insufficient liquidity may constrain Bitcoin from breaking new highs.

CryptoQuant analyst Darkfost stated that due to limited liquidity inflows into the crypto market, the stablecoin market cap remains sluggish in its recovery. Since May this year, the stablecoin market cap has contracted by $14 billion, signaling notable capital outflows from the market. Although conditions have shown slight improvement since September, with the stablecoin market cap rising by roughly $4 billion and reclaiming around $270 billion, and signs of a trend reversal appearing to materialize, the overall rebound remains relatively weak. Further driving Bitcoin to new all-time highs will require substantially greater liquidity support from the market.