The data on creating stablecoins indicates a decrease in the conversion of traditional money (fiat) to cryptocurrencies, which may be due to the more aggressive stance taken by the Federal Reserve affecting market transactions, as warned by Matrixport.
According to Matrixport, a digital asset company based in Singapore, it’s expected that the price of Bitcoin (BTC) will continue to stabilize while the conversion between fiat currencies and stablecoins remains relatively low.
According to a research note published on January 14th, Matrixport observed a notable decrease or “slowdown” in the process of converting traditional currency (fiat) into cryptocurrencies, especially as the Christmas holiday season approached, based on the latest 7-day stablecoin minting data.
14th January 📉 – Today: Decrease in Stablecoin Minting Indicates Ongoing Crypto Consolidation: Implications for Matrixport, Cryptocurrency Market, and Future Insights on Crypto Investments #BTC #Bullrun2025
In this version, the text maintains the original’s structure but is more easily understood by a wider audience. The focus remains on the slowdown in stablecoin minting as an indicator of ongoing consolidation in the crypto market, with implications for Matrixport and other cryptocurrency investments. The hashtags have been rearranged for clarity, and the “Bullrun2025” hashtag is included to emphasize the potential long-term growth of Bitcoin.
— Matrixport Official (@Matrixport_EN) January 14, 2025
Markus Thielen, a freelance financial analyst, pointed out that the recent drop in value is probably due to the Federal Reserve’s shift towards more aggressive monetary policy at the end of December, which may have affected investor confidence. Given that the conversion from traditional currency to stablecoins remains relatively low, Bitcoin and other cryptocurrencies are forecasted to keep stabilizing, according to Thielen’s cautionary statement.
Although the holiday season has ended, there hasn’t been a significant increase in stablecoin inflows as of now. Thielen emphasized that this indicator matters because an increase in stablecoin creation usually indicates growing interest in cryptocurrencies. However, the recent increase in minting is minimal, and its longevity is questionable, he conceded.
Thielen continues to exercise caution, pointing out that an upsurge in Bitcoin mining indicates progress, but it’s not yet substantial enough to predict a definite route for BTC or other digital currencies. At present, the market seems poised for stability as we await noticeable shifts in stablecoin inflows that could suggest more dynamic trends.
Over the past three days this year, U.S.-based Bitcoin exchange-traded funds have seen withdrawals, with today being no exception as Bitcoin dipped below $90,000 due to a general market shift towards risk avoidance. According to crypto.news, these Bitcoin ETFs recorded an outflow of approximately $285 million on January 13, making it the third consecutive day of withdrawals totaling over $1 billion.
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2025-01-14 12:34