The crypto market liquidity is shrinking, causing concern for asset valuations. Stablecoin supply stagnation is a headwind for Bitcoin and the broader ecosystem, falling $5.6 billion year-to-date to $153.4 billion. Bitcoin no longer trades like digital gold, with a negative correlation to gold. Tariff uncertainty and precious metal rotation are thinning crypto liquidity, with renewed geopolitical concerns accelerating the capital exodus towards metals. Tokenized real-world-assets show a rotation towards safe-haven assets, with Tether Gold’s value rising 20% to $2.7 billion. The tokenized commodities market surpassed $6 billion, with a 53% increase in less than six weeks.

Read more at Cointelegraph: CryptoQuant Says Bitcoin Is In A ‘Not Digital Gold’ Period