Stablecoins Are Drying Up! The Real Reason Bitcoin Failed to Reclaim $70,000

▲ Bitcoin (BTC), Tether (USDT), U.S. Dollar (USD) / ChatGPT-generated image ©

As Bitcoin (BTC) struggles under selling pressure without reclaiming the $70,000 level, the supply of stablecoins—a key liquidity indicator in the cryptocurrency market—has sharply declined, deepening the risk-off environment. Rather than focusing on a short-term price rebound, investors are closely watching whether fresh capital is actually flowing back into the market.

According to crypto media outlet Bitcoinist on February 13 (local time), on-chain analyst Axel Adler highlighted two major liquidity indicators signaling persistent market weakness. The first is the Stablecoin Supply Ratio (SSR) oscillator, which briefly turned positive in January but quickly reverted to negative territory. Historically, when the SSR indicator remains negative, Bitcoin has tended to experience price stagnation or declines.

The second indicator is the 30-day change in Tether (USDT) market capitalization. In the first week of January, approximately $1.4 billion flowed into the market, driving a rebound. Recently, however, the figure plunged to around negative $2.87 billion, confirming a significant capital outflow from the crypto ecosystem.

The trends in these two indicators suggest that January’s brief rebound occurred without sustainable liquidity support. As long as USDT’s 30-day change remains negative, a recovery in the SSR indicator is unlikely, reinforcing the view that risk appetite among market participants has significantly weakened. Without a steady resumption of stablecoin inflows, Bitcoin is expected to face continued downward pressure for the time being.

From a technical perspective, Bitcoin’s outlook is also challenging. Following the breakdown below $70,000, bearish momentum has persisted on the daily chart, with key moving averages shifting from support to resistance, signaling that the bull market has lost strength. Recent selling pressure appears driven not by simple accumulation but by forced liquidations and defensive position adjustments, potentially increasing short-term volatility.

Bitcoin’s primary support range currently lies between $60,000 and $62,000. Holding this range could lead to sideways movement, but a breakdown below this support may trigger a deeper correction. Experts warn that until Bitcoin reclaims major moving averages, the market is likely to remain highly sensitive to macroeconomic conditions and derivatives positioning.

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