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Bitcoin stabilizes near $64,000 as stablecoin liquidity drains
Bitcoin has been held back by resistance for months, while stablecoin reserves on major exchanges keep falling amid Strait of Hormuz shipping disruption that pushed Brent above $91 a barrel.
Bitcoin has returned to positive exchange-traded fund flows and stabilized near $64,000 after an eight-week investor retreat, according to CryptoSlate. However, crypto market liquidity remains strained, with stablecoin reserves continuing to fall on major exchanges.
That liquidity contraction is leaving Bitcoin’s recovery vulnerable to a breakdown if key support fails. CryptoSlate notes Bitcoin has been capped by resistance for months, and the current mix of improving sentiment and weaker liquidity could expose leveraged traders to sharper downside if support near $60,000 gives way.
The report ties the liquidity stress to macro conditions that are worsening, including geopolitical disruptions to energy shipping. Brent crude climbed to a one-month high above $91 a barrel as fighting involving the United States and Iran disrupted movement through the Strait of Hormuz.
CryptoSlate also points to shipping data showing fewer transits through the strait, including no liquefied natural gas tanker crossing since Thursday and only four vessels transiting Sunday, down from eight the prior day. The disruption threatens to revive inflation concerns, which could complicate expectations that the Federal Reserve has more flexibility to avoid further tightening.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%|Nat gas $2.895 ▼1.0%