The post Crypto Liquidity Alert: Major Stablecoin Exits Put Bitcoin Rally Momentum at Risk appeared on BitcoinEthereumNews.com.

TLDR: Stablecoin inflows spiked but failed to sustain, showing capital rotation, not commitment.  Multi-exchange outflows indicate systemic risk, not isolated exchange issues.  January recovery remains weak, reflecting tactical repositioning, not new market inflows.  Bitcoin rallies struggle without fresh stablecoin inflows, relying on recycled liquidity.   Stablecoin flows are collapsing across major exchanges, signaling a liquidity squeeze that limits Bitcoin’s rally potential. Traders are withdrawing capital, leaving price movements reliant on recycled funds rather than fresh inflows, creating a cautious market environment. Broad stablecoin outflows show systemic risk-off behavior across major crypto exchanges Between late summer and early November, stablecoin inflows on major exchanges reached a peak of +9.7B. This coincided with optimism around ETF flows and expectations of macroeconomic easing.  However, the rise in inflows failed to create a sustained base. Sharp oscillations appeared, showing traders rotated capital rather than committing long-term funds. From November into December, flows collapsed from nearly +10B to -9.6B. This swing was not isolated to a single exchange. Coinbase, Binance, OKX, Bybit, and others all registered outflows during this period.  The multi-exchange participation suggests a systemic withdrawal of liquidity rather than technical or exchange-specific issues. Stablecoin Flows Collapse “These dynamics highlight the particularly challenging environment in which Bitcoin is currently operating, weighed down by a persistent lack of liquidity that has now been impacting the market for several months.” – By @Darkfost_Coc pic.twitter.com/UNQAjN1s43 — CryptoQuant.com (@cryptoquant_com) February 2, 2026 The impact on the market was notable. Spot buying power shrank, and derivatives trading increasingly relied on leverage instead of fresh capital.  This behavior created price volatility, with breakouts failing more often than they succeeded. Traders’ reluctance to maintain positions reflects broader risk-off sentiment in the crypto ecosystem. Weak inflow recovery limits Bitcoin rallies, forcing reliance on recycled liquidity January showed a modest rebound from December’s…

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Filed under: News - @ February 3, 2026 2:25 am