Stablecoin contraction forces Bitcoin drop despite Fed reserve gains

Bank reserve balances rose $67.5 billion between Oct. 28 and Nov. 4, according to the Federal Reserve’s Nov. 5 release, but the more abundant dollar liquidity is not automatically bullish for Bitcoin. Over the same period, data provider DefiLlama tracked dollar-pegged stablecoin circulation falling by more than 5.7 billion units, or 1.91%. The split leaves an incomplete picture for a Bitcoin recovery. Higher bank reserve balances would still need to translate into financing and purchases, so the measured token contraction adds a crypto-side observation to that test. A Nov.

Source: CryptoSlate