- Rising stablecoin supply shows investors are still holding funds for the next rally.
- As major economies shift toward easier financial conditions global liquidity is turning upwards.
- Analyst states, “Bull run isn’t over, it’s delayed”.
Bitcoin suffered a sharp crash after a sudden liquidity shock hit global markets, wiping out about millions in value within minutes. Analysts say the fall was not caused by Bitcoin itself but by a spike in Japanese government bond yields, which disrupted the yen carry trade and forced investors to unwind positions across multiple risk assets.
Amid the market instability, the long-held idea that Bitcoin follows a clean four-year halving cycle is losing credibility. According to market analysts, the current slowdown looks more like a delay than the end of a bull run, citing several reasons.
Growing Stablecoin Liquidity
Even after the recent market pullback, total stablecoin supply continues to increase. This is a sign that large investors have not left the market.
Instead, they are holding capital on the sidelines in stablecoins and waiting for better macro conditions. Rising stablecoin reserves often act as fuel for the next stage of a crypto rally.
Global Liquidity Is Turning Upward
Several major economies are moving toward easier policy. China has been injecting liquidity for months. Japan recently announced a stimulus package of about $135B and is easing crypto regulations. Canada is also shifting toward looser conditions. In the United States, the Federal Reserve has already stopped quantitative tightening, which historically happens before some form of liquidity expansion. Bitcoin rarely moves against a rising global liquidity cycle.
Related: Bitcoin Loses the Payments War: Stablecoins Take the Lead in Global Settlement
Upcoming Policies Could Add More Liquidity
Policy actions in the U.S. may increase liquidity further. The Treasury’s General Account holds roughly $940B, about $90B above its normal range. When that money flows back into the system, it typically boosts financing conditions and supports risk assets. A more crypto-friendly Fed leadership could strengthen the outlook.
“The environment points to a longer, broader uptrend that could stretch through 2026 and into 2027,” the expert said.
Bitcoin and Altcoins Still Under Pressure
Bitcoin and altcoins are still facing selling pressure, with most major coins moving sideways after recent volatility. Bitcoin is trading near $89,703 and Ethereum around $3,038, both showing weak momentum. Big altcoins like XRP at $2.04, BNB at $884, Solana at $133, Dogecoin at $0.139, and Cardano at $0.41 are also struggling to recover.
Related: Selling Its Bitcoin Holdings is Not Among Strategy’s Considerations—Bitwise CIO
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Source: https://coinedition.com/three-reasons-why-bull-run-is-not-over-yet/
