Bitcoin’s (BTC) Rally Looks Strong, But the Real Money Behind It Is Still Missing

Liquidity is showing early signs of recovery, but Bitcoin needs stronger stablecoin inflows before the rebound becomes truly convincing.

Bitcoin’s recent recovery has strengthened considerably, but Darkfost’s latest findings suggest that liquidity is still lagging behind the price recovery.

The cryptocurrency has climbed roughly 40% from July’s low of $58,500 to briefly near $82,000 in a span of two months, yet spot demand remains relatively weak.

Troubling Weakness

According to Darkfost’s latest findings, the 90-day Cumulative Volume Delta is still sitting in neutral territory. Futures activity tells a different story, however, as buyers have clearly taken the upper hand.

The lack of stronger incoming liquidity can also be seen in stablecoin reserves on exchanges, particularly Binance. At the peak of the current cycle, Binance’s stablecoin reserves reached a new platform record of more than $50 billion. But that trend reversed sharply from October onward, as reserves fell by nearly $7 billion.

During the height of the correction, investor demand contracted so severely that the 90-day change in stablecoin market capitalization held in Binance’s reserves fell to -17%. Conditions have improved since then, although the recovery remains limited. The 90-day change has climbed back to -1.6%, while Binance’s stablecoin reserves have increased by $1.6 billion over the past month.