Stablecoin Growth Decelerates Amid Weaker Liquidity Outlook

2 mins mins

Key Points:

Stablecoin supply growth peaked in October, marking a slowdown in momentum.
Liquidity weakens following Federal Reserve’s more cautious stance.
Crypto market sees reduced inflows and expanding stablecoin supply.

Matrixport’s report on December 16 revealed a decline in the rolling growth rate of stablecoin supply since October, as Federal Reserve caution affects market liquidity.

This development suggests potential challenges for market liquidity, impacting cryptocurrency assets and signaling a cautious environment following previous growth periods.

Bitcoin Slips to $86K Amid Liquidity Concerns

Bitcoin (BTC) currently trades at $86,001.20, reflecting a 26.31% decline over 90 days. Its market cap is approximately $1.72 trillion, according to CoinMarketCap data. Recent trading volume shows a dynamic $44.72 billion, down by 4.04% over 24 hours.

Though stablecoin supply continues to grow, the ongoing regulatory changes and the Fed’s approach are seen as weakening the overall liquidity picture. This could affect trading volumes, but crypto market players continue observing the Fed’s next moves closely.

Market reactions underscore expectations of tightened liquidity conditions, echoing across the crypto community. However, no specific statements were made by prominent figures like Markus Levin or Jihan Wu from Matrixport. As noted, “there are no direct quotes or statements from relevant key players or leadership regarding the specific events and trends you inquired about.”

Expert Insight

Did you know? Stablecoin supply growth often presages changes in Bitcoin pricing. A growth slowdown indicates potential liquidity contractions, mirrored by historical trends during past market cycles.

Expert assessments, including insights from Coincu, suggest that regulatory shifts and economic policies will shape the liquidity paradigm in crypto markets. With exchanges and institutional backers monitoring the Federal Reserve’s moves, the ease or constraint of liquidity remains crucial for upcoming financial maneuvers.

bitcoin-daily-chart-5053 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:41 UTC on December 16, 2025. *Source: CoinMarketCap*

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.