A $2.3 billion contraction in stablecoin liquidity is undermining Bitcoin's recovery even as exchange-traded fund flows turn positive again. According to data from CryptoSlate, renewed inflows have helped Bitcoin stabilize near $64,000 following an eight-week stretch of investor withdrawals. However, the shrinking pool of stablecoin capital signals reduced buying power across the broader crypto market, leaving prices exposed to further downside toward $57,000. The recovery is further complicated by external pressures, including rising oil prices and geopolitical tensions disrupting a key global energy corridor. These macroeconomic factors add uncertainty to Bitcoin's near-term trajectory, potentially offsetting the support provided by returning ETF demand. Analysts suggest the divergence between positive fund flows and declining market liquidity could limit the strength and durability of any sustained price rebound in the weeks ahead.
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