Analyst: The continuous decrease in stablecoin reserves on Binance means a continuous decline in market purchasing power

According to BlockBeats, on March 1st, CryptoQuant analyst @ Crazzyblockk stated that the cryptocurrency market is struggling to gain upward momentum, with weak demand for Bitcoin and major assets. A key factor behind this trend is the sustained decline in stablecoin reserves on Binance, particularly USDT and USDC. Stablecoins are the main source of liquidity, driving the purchase and market rise of cryptocurrencies. According to the latest data from CryptoQuant, the weekly stablecoin reserves have continued to decline since the beginning of 2025. In history, a decrease in reserves meant a weakening of purchasing power, limiting the flow of new funds into the market. The USDT and USDC reserves on Binance have steadily decreased over the past few months. Lower reserves mean less funds available for purchasing cryptocurrencies, thereby reducing purchasing pressure. If stablecoin reserves continue to decline, the liquidity of cryptocurrencies may further tighten, delaying any significant upward trend. On the other hand, the rebound of reserves will also indicate the inflow of new funds and the recovery of demand.