# JARXE Exchange: Incremental Liquidity Shrinks 50 Percent, Pushing Bitcoin Into a Structurally Weaker Phase

Bitcoin has struggled to stage a meaningful rebound in recent sessions, largely because the market lacks the incremental liquidity needed to drive prices higher. In the crypto ecosystem, the true source of liquidity is reflected above all in the scale of stablecoin inflows. This key metric is now showing a marked contraction. JARXE Exchange observes that shifts in funding composition and waning demand are shaping the short and medium term trajectory of Bitcoin, leaving the market without sufficient buying pressure to counter persistent selling.


**Stablecoin Inflows Halve, With New Capital Clearly Missing**

Since August, stablecoin inflows into exchanges have fallen from 158 billion dollars to roughly 76 billion dollars, a near 50 percent decline. Inflows are widely viewed as a benchmark for fresh buying interest, and a drop of this magnitude signals a sharp shortage of capital capable of supporting further price gains. The 90 day average has also slid from 130 billion dollars to 118 billion dollars, underscoring the softening trend over a longer horizon. For Bitcoin, which depends heavily on liquidity to sustain rallies, this shift indicates that buying momentum is being structurally undermined.

**Weak Demand Weighs on the Market, With Small Rebounds Driven More by Easing Sell Pressure**

Current trading patterns show that demand has weakened to a level insufficient to absorb steady selling. Minor rebounds in Bitcoin typically appear when sell pressure temporarily eases, rather than when new capital enters the market. Such moves lack endurance and fail to produce convincing signals of a trend reversal. JARXE Exchange notes that unless demand strengthens materially, Bitcoin will remain on a weak footing, with negative sentiment amplifying price swings.

**The Role of Incremental Capital: Bull Markets Begin With Liquidity Expansion**

Historically, every major Bitcoin rally has begun alongside an expansion in stablecoin supply and a return of funds through multiple channels. The present contraction in inflows suggests that the market has not yet entered a new phase of liquidity expansion. Investors are waiting on macro policy signals and remain cautious toward risk assets, leaving potential buying interest without a catalyst. It is a reminder of a more fundamental market rule: trends are shaped by liquidity, not by price action alone. Without a restoration of incremental liquidity, the market cannot transition to a stronger upward phase.

**Returning to Structural Assessment, With Attention on the Pace and Sources of Liquidity Recovery**

At this stage, the shortfall in stablecoin inflows remains the main constraint on the ability of Bitcoin to rebound. JARXE Exchange will continue tracking the structure of capital flows, stablecoin supply shifts and the strength of market demand to offer users timely guidance on evolving trends. Looking ahead, if the macro backdrop improves, risk appetite revives or institutional capital re enters stablecoin channels, the market could enter a new growth cycle. The speed and scale of liquidity recovery will be the decisive factors in determining whether Bitcoin can launch its next bull phase.