The crypto market has once again received a warning signal as the total volume of stablecoins has dropped by USD 2.24 billion in 10 days.
According to Santiment, this drop shows that investors are not willing to buy the fall in crypto prices, instead choosing to exit to cash and safe assets.
Amidst global economic uncertainty, capital is seen shifting to gold and silver, which are now recording new highs.
Gold surged more than 20% past the $5,000 mark, while silver more than doubled, far outperforming Bitcoin.
Bitcoin has fallen almost 30% since the big drop in October, when more than $19 billion in leveraged positions were liquidated in a single day.
Since the incident, investor confidence in risky assets has been seen to weaken.
Santiment stressed that a crypto market recovery usually only begins when the supply of stablecoins increases again, signaling an influx of new capital and restored investor confidence.
As long as stablecoin flows continue to decline, altcoins are expected to remain depressed, while Bitcoin can only survive without a major surge.
For now, investors are choosing safety over risk, and gold is the main destination, not Bitcoin.
