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crypto.news 2025-01-14 09:27:12

Bitcoin to remain in consolidation as fiat-to-stablecoin conversions stay muted, analysts warn

Stablecoin minting data shows a slowdown in fiat-to-crypto on-ramps, with the Federal Reserve’s hawkish shift likely impacting market activity, Matrixport warns. Bitcoin ( BTC ) is likely to stay in consolidation as long as fiat-to-stablecoin conversions remain muted, according to Singapore-based digital asset firm Matrixport. In a Jan. 14 research note, Matrixport noted that the latest 7-day stablecoin minting indicator shows a “significant slowdown” in fiat-to-crypto on-ramps, particularly in the lead-up to the Christmas holidays. https://twitter.com/matrixport_en/status/1879061318650806474?s=46 Markus Thielen, an independent analyst, said the dip can be attributed to the Federal Reserve’s hawkish pivot in mid-December, which likely dampened investor sentiment. With fiat-to-stablecoin conversions still subdued, Bitcoin and other cryptocurrencies are expected to continue consolidating, Thielen warned. You might also like: Matrixport outlines new risks that could challenge Bitcoin’s rally in 2025 Despite the end of the quieter holiday period, stablecoin inflows have yet to show a meaningful rebound. Even after the holiday period ended, stablecoin inflows have yet to rebound meaningfully. Thielen stressed that this metric is important, as a rise in stablecoin minting “typically signals rising demand for cryptocurrencies.” However, the current uptick in minting is slight, and its sustainability remains uncertain, he admitted. Thielen remains cautious, noting that while any increase in minting is a good sign, it’s still not enough to signal a clear path for BTC or other cryptocurrencies. For now, the market is likely to stay in a holding pattern until more significant movements in stablecoin inflows appear. Meanwhile, spot Bitcoin exchange-traded funds in the United States recorded their third consecutive day of outflows this year, as Bitcoin fell below $90,000 amid a broader market risk-off sentiment. As crypto.news reported , the 12 spot Bitcoin ETFs logged nearly $285 million in net outflows on Jan. 13, extending the outflow streak to three days, during which over $1 billion exited the funds. Read more: Bitcoin’s outlook faces headwinds amid stronger dollar: Matrixport

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