Stablecoin Liquidity Dries Up, Here’s Implication for Bitcoin Price Rebound

Key Insights:

• Stablecoin flows from exchanges drop from $140 billion in 2023 to $4 billion, stalling Bitcoin (BTC) price rebound.
• Ben Hart advised BTC holders to remain calm, highlighting unique features that could fuel future adoption.
• Natalie Brunell reassures Bitcoin holders during ongoing dip, advocates for long-term mindset.

The latest Stablecoin news shows that flow to exchanges has plunged sharply amid ongoing uncertainty in the crypto market. This stablecoin liquidity condition creates a challenging environment for Bitcoin (BTC).

Stablecoin News: The Liquidity Crunch

As disclosed by onchain data analytics platform CryptoQuant, stablecoin flows are witnessing exchange flow reversal.

After a strong rally in 2023, the stablecoin sector grew to a market capitalization of about $140 billion. However, in December 2025, the total market cap of the sector began to decline, ending its sustained growth trend.

Per the Stablecoin news, recent data shows ongoing pressure, with periodic weekly drops. The most critical signal is exchange flow reversal.

Generally, strong stablecoin inflows into exchanges indicate that investors are willing to gain exposure to the market. On the other hand, outflows suggest capital preservation and reduced risk.

The market still showed exceptional momentum in November 2025. Stablecoin monthly netflows surpassed $9.7 billion, with nearly $8.8 billion concentrated on the Binance exchange alone.

At the time, this abundance of liquidity supported Bitcoin price rally toward a new all-time high.

Since November 2025, these net inflows have been largely wiped out. Stablecoin-linked flows initially shed $9.6 billion, before facing another $4 billion in outflows. Binance alone registered outflows reaching $3.1 billion.

This move indicates traders pulling stablecoins off exchanges. Their intention could be to preserve capital or reduce exposure amid crypto market uncertainty.

Overall, the stablecoin news shows low exchange liquidity makes the Bitcoin market fragile. Smaller trades can cause bigger price swings, and price recoveries become weaker.

Bitcoin Crash and Historic Behavior

On its part, the Bitcoin (BTC) price continues to experience a downtrend. As of this writing, BTC oscillated around $77,771, after declining by 1.3% over the past 24 hours.

In an X post, Ben Hart, a vocal Bitcoin advocate, has responded to concerns about the recent Bitcoin price drop.

This, amid the stablecoin news, has caught the eyes of crypto market traders. Meanwhile, Hart urges traders to look at historical trends, instead of short-term dips.

He said he is not worried about recent BTC movements because its core properties remain unchanged despite temporary price volatility.

Besides, he also highlighted the BTC fixed supply as one of its long-term value theses. According to Hart, the 21 billion BTC in supply will never be enough for 8 billion people across the globe.

In essence, demand from adoption and institutions could drive Bitcoin prices higher, making dips look like buying opportunities in hindsight.

Hart added that BTC is truly decentralized with no central control and fixed rules. This autonomy protects BTC against manipulation or failure from human corruption.

Another unique feature Hart highlighted is that Bitcoin lets users send any amount across borders instantly with just keys or seed phrases.

The BTC enthusiast concluded that the leading coin is only facing price corrections, which he views as healthy.

How to Handle the Broken BTC Market Amid the Stablecoin News?

Beyond the stablecoin news and Bitcoin behavior, Natalie Brunell, a prominent Bitcoin investor, also dropped an optimistic message for supporters of the top coin.

Her comment is an empathetic response to the wave of FUD she is seeing in her community during the current Bitcoin downturn.

She reported that more shaken people have reached out now, despite this cycle’s drawdowns being milder so far.

Natalie reminded community members that Bitcoin price dropped 75% from its $68,0000 all-time high to $16,000 in 2022.

Thus, the current cycle drop is indeed milder, but Natalie still acknowledged the emotional turmoil traders are currently experiencing. She especially empathized with investors and traders whose income is tied to Bitcoin.

Natalie urges traders to treat Bitcoin as another path that gives everyday families a real shot, not some thrilling get-rich-overnight scheme.

Her final advice to BTC holders is to keep thinking long-term, while they keep building and prioritizing family.