Recent on-chain data indicates a significant drop in exchange inflows of Ethereum-based (CRYPTO:ETH) stablecoins, falling below the 90-day average.

This decline suggests reduced investor demand for buying Bitcoin (CRYPTO:BTC) and other volatile assets.

Lower stablecoin inflows could signal a bearish trend for the overall crypto market, as it may indicate that investors are withdrawing capital rather than preparing to buy.

The decrease comes despite Bitcoin's recent recovery to over $63,000, highlighting potential concerns about sustained market momentum.

Analysts view this drop in inflows as a negative signal for Bitcoin's near-term price outlook.