Stablecoin Inflows Double Despite Bitcoin’s Downturn — A Bullish Signal?

The crypto market is seeing some bullish signals despite the bears being in major control. A good number of investors are deploying capital into the market, as seen in rising stablecoin inflows.

According to a report from CryptoQuant, persistent selling pressure has not deterred stablecoin inflows to exchanges from continuing to grow. In fact, inflows have doubled over the past month. This growth comes as bitcoin (BTC) approaches a 50% downturn from its October high of $126,000. At the time of writing, the cryptocurrency was trading around $64,630.

Stablecoin Inflows Surge

CryptoQuant explained that the weekly average stablecoin inflows fell to $51 billion in late December 2025. The drop in the seven-day moving average reflected a lack of demand that had plagued the market in prior months.

However, recent data shows stablecoin inflows reversing the trend. The weekly average has doubled to $98 billion, surpassing the 90-day average of $89 billion. Such growth indicates that capital deployment has accelerated over the past few weeks. Simply put, investors are buying the dip.

Cointab has reported that several entities, including the business intelligence firm Strategy, and even individuals like former kickboxing world champion Andrew Tate, are buying the dip.

Unfortunately, current capital deployment is not strong enough to absorb ongoing selling pressure, so the bears remain dominant. Nevertheless, the increasing capital deployment is still a positive signal showing that investor interest is returning despite the downturn in prices.

“This dynamic still needs to strengthen, but some participants are already buying this dip,” CryptoQuant added.

Bitcoin Likely Forming Market Bottom

As more investors are scooping up digital assets at a discount, BTC is likely forming a bottom. A separate analysis from CryptoQuant revealed that the asset flashed a historical bottom signal earlier this week as it entered a level of unrealized losses not seen in three years.

Per the report, the average Bitcoin holder is now underwater on their position, especially after the cryptocurrency entered the negative Net Unrealized Profit/Loss (NUPL) territory. Historical data from the 2018-2019, 2020, and 2022-2023 cycles show that BTC rarely remains in negative NUPL territory.

Negative NUPL readings often precede significant market recoveries. Although the signal doesn’t predict the exact timing, the market may be witnessing the formation of the next major bottom, with a sustained recovery phase to follow.

The post Stablecoin Inflows Double Despite Bitcoin’s Downturn — A Bullish Signal? appeared first on CoinTab News.