Stablecoin Inflows Surpass All Previous Peaks – Is Bitcoin Set For A Major Move?

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Bitcoin is fighting to reclaim key resistance levels as macroeconomic uncertainty and trade war fears proceed to affect each crypto and equities within the U.S. The leading cryptocurrency has lost over 29% of its value since January, and the downtrend shows no clear signs of reversal yet. As Bitcoin struggles below key levels, investors are questioning whether the bull cycle is over or if the market is establishing for a significant comeback.

Despite the negative sentiment, on-chain metrics suggest that demand for BTC and ETH stays strong. CryptoQuant data reveals that the present spread between the Exchange Inflow of all stablecoins on the Ethereum network and the Inflow of BTC + ETH (selling pressure) exceeds all previous peaks in coin demand. Historically, such trends have marked key accumulation zones before price recoveries. Notably, the very best demand for BTC and ETH was recorded near Bitcoin’s all-time high (ATH) at $101K.

While uncertainty persists, this on-chain signal suggests that accumulation could also be underway, giving Bitcoin the potential to stabilize and reclaim higher price levels. The following few days will probably be critical to determining whether bulls can regain control or if further declines are on the horizon.

Bitcoin In Bear Market Territory But Demand Signals A Potential Recovery

Bitcoin has officially entered bear market territory, with many analysts forecasting a deeper correction as fear spreads across global financial markets. Erratic policies by U.S. President Trump, including tariffs and foreign trade decisions, have contributed to economic instability, with rising speculation a couple of potential recession. These aspects have shaken each the crypto and equity markets, resulting in a continued decline in Bitcoin’s price.

Nevertheless, not all analysts agree that the bull cycle is over. Some argue that despite the correction, strong demand stays for BTC and ETH. Top analyst Axel Adler shared insights on X, revealing that the present spread between the Exchange Inflow of all stablecoins on the Ethereum network and the Inflow of BTC + ETH (selling pressure) exceeds all previous peaks in coin demand. Historically, similar trends have marked key accumulation zones before major price recoveries.

Exchange Inflow Speed All Stablecoins Bitcoin/Ethereum | Source: Axel Adler on X
Exchange Inflow Speed All Stablecoins Bitcoin/Ethereum | Source: Axel Adler on X

Adler highlighted that the very best demand for BTC + ETH was recorded near Bitcoin’s all-time high (ATH) at $101K. Moreover, the metric peaks, marked by green circles, indicate energetic accumulation periods available in the market. As of now, the spread stays above all previous peaks and sits at one standard deviation from the annual average levels.

Since September 2023, Bitcoin has shown sustained demand growth, reflected within the metric’s range curve, which has a slope of roughly 45 degrees. If this trend holds, Bitcoin could also be nearing the top of its correction, setting the stage for a possible recovery in the approaching months.

Price Struggles Below Key Levels as Bulls Feel The Pressure

Bitcoin is currently trading at $83,500 after losing the 200-day moving average (MA) around $84,300. The continuing battle between bulls and bears stays intense, with BTC struggling to reclaim key resistance levels. For a recovery to take shape, Bitcoin must push above the $86,000 level with strength, confirming a shift in momentum. This is able to open the door for a possible retest of the $90K mark, which stays a critical psychological and technical resistance.

BTC is trading below the 200-day MA | Source: BTCUSDT chart on TradingView
BTC is trading below the 200-day MA | Source: BTCUSDT chart on TradingView

Nevertheless, failure to reclaim $86K in the approaching sessions could spell trouble for bulls. If BTC continues to struggle below this level, a drop below the $80K support zone becomes increasingly likely. A break below this level could trigger a deeper correction, potentially leading BTC into the $75K-$78K demand zone.

For now, Bitcoin stays in a consolidation phase below key moving averages, and the shortage of bullish momentum raises concerns about further downside risk. Traders and investors will closely monitor whether BTC can regain lost ground or if continued selling pressure will push prices toward lower levels. The following few days will probably be crucial in determining Bitcoin’s short-term trajectory.

Featured image from Dall-E, chart from TradingView 

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