TLDR
- Stablecoin inflows to exchanges have surged by 100% from $51 billion in December to $108 billion.
- The rise in stablecoin deposits indicates a gradual return of investor interest in the crypto market.
- Despite the surge in stablecoin inflows, overwhelming selling pressure continues to affect market stability.
- Bitcoin’s price has fallen to $64,875, marking a 9.08% drop in the last 24 hours and a 30% decline since the start of the year.
- Bitcoin miners are facing capitulation as production costs exceed market prices, signaling ongoing market weakness.
Recent on-chain data reveal that stablecoin inflows to exchanges have surged by 100% in recent weeks. In late December, stablecoin deposits were at $51 billion, but they have now doubled to $108 billion. This significant increase comes despite the crypto market facing one of its largest sell-offs in recent months.
Stablecoin Inflows Surge Amid Market Decline
Despite a challenging crypto market, stablecoin inflows have steadily risen. According to Darkfost, a crypto data analyst, the weekly average stablecoin inflows on Ethereum had dropped to $51 billion in late December. However, this figure has now doubled, reaching over $102 billion, above the 90-day average of $89 billion. Darkfost interpreted this change as an indication of increased capital deployment on exchanges.
He explained that the rise in stablecoin deposits suggests that investor interest is returning, albeit gradually. Darkfost also pointed out that the current market conditions still pose challenges, as selling pressure remains overwhelming. While stablecoin inflows are a positive sign, the market’s ability to absorb the new capital is yet to be fully tested.
Bitcoin Price Struggles Amid Market Pressure
The ongoing sell-off has put significant pressure on Bitcoin’s price, causing it to hit new lows. As of the latest data, Bitcoin is trading at $64,875, down 9.08% in the last 24 hours. Over the past seven days, Bitcoin has dropped by 21.37%, continuing its downward trend from earlier in the year. The decline has led to a 30% drop in Bitcoin’s value since the start of 2026, and it’s now down nearly 50% from its all-time high recorded in October 2025.
The situation has worsened due to miner capitulation. Bitcoin’s production costs have risen to $87,000 per coin, yet its market price remains well below this threshold. This discrepancy has led to forced selling, adding further downward pressure on Bitcoin’s price.
ETF Outflows Contribute to Market Strain
ETF outflows have also exacerbated the stress on Bitcoin’s price. Data from the U.S. spot ETF tracker SosoValue shows that investors have pulled over $1.25 billion from Bitcoin-focused ETFs in the last three days. On February 4, ETF outflows reached $544.94 million, marking the largest withdrawals during the current sell-off.
These outflows reflect investor concerns about the ongoing market downturn, which has affected both institutional and retail investors. The continued pressure from these withdrawals contributes to the broader market struggles, further pushing down Bitcoin’s price and adding to the uncertainty surrounding the crypto market.
