Analyst: Continued Decline in Stablecoin Reserves on Binance Indicates Market Buying Power Erosion

On March 1st, the CryptoQuant analyst @Crazzyblockk pointed out that the cryptocurrency market is having difficulty gaining upward impetus, with weak demand for Bitcoin and major assets. One of the main factors behind this trend is the continuous decline in the reserves of stablecoins on Binance, especially USDT and USDC. Stablecoins are a primary source of liquidity that drives cryptocurrency purchases and market uptrends. According to CryptoQuant's latest data, stablecoin reserves have been decreasing on a weekly basis since the beginning of 2025. Historically, a decrease in reserves has indicated a weakening of purchasing power, limiting the inflow of new funds into the market. The reserves of USDT and USDC on Binance have been steadily declining over the past few months. Lower reserves imply a reduced amount of funds available to buy cryptocurrencies, thereby reducing buying pressure. If stablecoin reserves continue to decline, cryptocurrency liquidity may further tighten, delaying any significant uptrend. On the other hand, a rebound in reserves would signal the inflow of new funds and a recovery in demand.