Stablecoin Expansion Stalls Since Bitcoin Halving, Potential U.S. CPI Print and China Stimulus May Offer Support

The growth of stablecoins such as USDT, USDC, and DAI has stalled since the Bitcoin halving, which may have bearish implications for the market. Traders often use stablecoins to fund cryptocurrency purchases and derivatives trading, so their expansion is seen as a bullish development. However, since the halving, there has been nearly zero growth in stablecoin inflows, and bitcoin futures leverage has been dramatically reduced. A potential soft U.S. CPI print on Wednesday and China's plan to step up fiscal support to the economy may revive inflows into the market and bode well for risk assets.