The market conditions are very volatile as the U.S. threatens to hit the NATO countries with tariffs. Meanwhile, the European nations are brandishing their power by threatening to cut off access to US markets through the so-called “trade bazooka. Cutting out US companies' function in the EU market could cost billions of dollars.
NATO’s retaliation plan
Another potential course of action involves NATO countries selling off their U.S. dollar-denominated bonds on the open market. Such a move could depress the dollar, raise borrowing costs, and fuel inflationary pressure in the U.S. economy.
Despite two of the biggest economies plotting against each other and the geopolitical tension rising, the altcoin market cap still managed to trade inside the ascending triangle. The ascending triangle is a bullish pattern, and holding this shape shows that the altcoin season is just delayed and not cancelled.
According to analyst and entrepreneur Mark, the altcoin season this year is going to be ‘biblical.’ Speaking to a prominent crypto media outlet, Fundstrat managing partner Tom Lee also projected that once gold and silver take a break from their rallies, the crypto market will come back to life.
https://twitter.com/santimentfeed/status/2015845556103381416
However, the liquidity in the crypto has dried up. According to Santiment, an analytical platform, the combined market cap of the top 12 stablecoins in crypto has declined by $2.24B in the past 10 days.
The dwindling supply of stablecoin could mean several things. As the market conditions are volatile, investors are risk-averse and moving out of crypto in search of safe havens. If at all investors were buying and selling, the money would remain in the crypto market in the form of stablecoins.
But, this behavior shows investors cashing out and a stablecoin crunch evolving. As such, before the altcoin season kicks off, there will be a recovery in stablecoins.