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Stablecoin Inflows Surge as Bitcoin Struggles Under Persistent Selling Pressure

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Stablecoin inflows now exceed the 90-day average despite Bitcoin struggling to regain upward momentum. 
  • Exchange liquidity is rising, but selling pressure continues to cap short-term price recovery attempts. 
  • Investor behavior reflects cautious accumulation rather than aggressive dip buying or breakout chasing. 
  • Market structure points to a transition phase marked by growing participation and defensive demand.

 

Stablecoin inflows to exchanges have surged to about $98 billion this week, nearly doubling from late December figures as Bitcoin’s price drops below key support.

Data shows capital moving back onto trading venues while sell-side pressure persists and price remains under strain.

The rising liquidity pattern comes as the market experiences heavy selling and subdued short-term demand. 

Liquidity Expansion Without Price Confirmation

Stablecoin inflows have doubled in recent weeks and moved above their 90-day average. This change shows that capital is returning to exchanges after months of muted participation and low turnover.

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Bitcoin price, however, continues to weaken as rallies fail to hold. Each recovery attempt meets renewed selling, indicating that supply remains greater than current demand at these levels.

Market observers described the flow as preparation rather than aggressive buying.

The structure suggests that the market is not constrained by lack of funds. Instead, it faces a persistent overhang of available Bitcoin from holders distributing into strength.

Stablecoins typically move to exchanges when investors intend to deploy capital. Their rise signals positioning activity rather than passive storage or risk avoidance.

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Yet the absence of price response shows that buyers are executing cautiously. Orders appear layered and incremental, absorbing dips instead of pushing breakouts.

This pattern keeps volatility elevated while preventing sharp upside movement. Liquidity builds under the surface, but price remains trapped by steady sell-side pressure.

The result is a market where participation grows without trend confirmation. Exchange activity increases even as the broader structure remains corrective.

Defensive Demand and Early Accumulation Signals

The current environment reflects demand that is present but restrained. Investors appear focused on controlled entries rather than rapid exposure to price swings.

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This behavior aligns with early accumulation phases observed during past deep corrections. Ownership changes gradually while price trades sideways or lower.

Another analyst tweet emphasized that stablecoins move before sentiment improves. The message framed the flows as strategic positioning instead of speculative chasing.

Such activity suggests that capital is preparing for longer-term opportunities rather than short-term rebounds. The market shows signs of patience rather than urgency.

Supply continues to dominate short-term price action. Long-term holders, miners, and treasury accounts remain active sellers during relief rallies.

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As a result, price fails to convert higher inflows into sustained momentum. Demand absorbs pressure but does not overwhelm it.

This structure often leads to extended basing periods. Price can remain range-bound while liquidity and participation rebuild beneath the surface.

Historical patterns show that either consolidation or a volatility flush can follow this phase. Both outcomes depend on how supply responds to rising demand.

For now, stablecoin inflows signal that investors are no longer absent from the market. Capital is present, but conviction remains measured.

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The market continues to adjust through balance rather than reversal. Liquidity growth and selling pressure coexist, shaping a cautious and transitional trading environment.

 

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Crypto World

Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens

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Ethereum Price Prediction

Crypto analyst Ansem argues that Ethereum (ETH) is in a “worse spot” in 2026 than it was in 2023, pointing to a thesis he says has been eroding for years.

His bearish take drew rebuttals from some members of the community. Meanwhile, on-chain activity and technical indicators elsewhere on the network flash bullish signals.

Ansem Lists Cracks in the ETH Thesis

Ansem argues that Solana (SOL) has dominated retail activity this cycle. Hyperliquid has taken the lead in perpetual futures trading, while rollups have failed to gain traction.

He also noted that Vitalik Buterin “publicly abandoned” the general-use rollup thesis. The ongoing Aave (AAVE) situation around the KelpDAO rsETH exploit, Ansem said, is a mark on  Ethereum’s core value proposition of “safety + security of defi & insto interest.

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“ETH thesis has been weakening consistently for years,” the analyst wrote. ETH in 2026 is in a worse spot than it was in 2023, amplified by AI doing extremely well & tech stocks being much more favorable investments with real revenues / emerging narratives / increasing momentum, ETH is a $300B asset with a ton of overhang from Tom Lee topblasting + complacent ETH holders sitting idle in defi protocols.”

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Technically, the analyst noted that ETH remains in a sustained downtrend after failing to break multi-year resistance. He projected that the second-largest cryptocurrency could slip to 2025 lows near $1,300 and to the bear-market lows from 2022.

“Tight invalidation 2377 assuming problems worsen if you want to play it loose assuming other risk assets continues doing well & drags it up probably somewhere around 2700/2800 invalidation fundamentals wise would want to see breakout activity from some new vertical,” the post read.

Ethereum Price Prediction
Ethereum Price Prediction. Source: X/Ansem

Community Members Push Back

The take triggered notable pushback. Ryan Berckmans accused Ansem of not understanding fundamentals. Leo Lanza went further, sharply dismissing the analyst’s bearish case on X.

Another user pointed to a 56% drop in the SOL/ETH pair this cycle.

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“Soleth is down 56% after being up 12x+ *this cycle* because one guy decided to buy 5% of the eth supply after it had underperformed all cycle. idk why you guys act like i dont also bearpost solana i havent posted anything bullish about sol in over a year,” Ansem replied.

Not everyone shares the bearish view on Ethereum. BeInCrypto recently highlighted that network activity remains strong, while technical indicators like the Rainbow Chart and MACD are also flashing bullish signals.

With macro and geopolitical uncertainty still in play, the question is whether ETH slides further this year or stages a renewed rally.

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The post Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens appeared first on BeInCrypto.

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?