Analyst: Ongoing macro headwinds continue to pressure the crypto market, which still needs capital inflows to stabilize

BlockBeats News, March 8, CryptoQuant analyst Darkfost stated in a post, "Macroeconomic headwinds continue to put pressure on the crypto market. In the current challenging environment for risk assets, the crypto market remains under sustained pressure. The latest macroeconomic data has made the Federal Reserve's decision-making even more complicated. Inflation remains stubborn, demand is still resilient, while at the same time, the unemployment rate has started to rise, making the overall economic situation increasingly complex. The latest non-farm payroll report also shows that layoffs far exceeded market expectations, further increasing uncertainty."

Meanwhile, market liquidity remains tight. This situation has even affected institutions like BlackRock, which recently had to limit investor redemptions due to insufficient available liquidity. As a result, the Federal Reserve's policy balancing act has become even more difficult, and it is likely to maintain a wait-and-see attitude in the short term.

This liquidity constraint is also impacting the crypto market. Since the beginning of this year, the net flow of stablecoins into trading platforms has generally been negative. However, this trend seems to be showing signs of stabilizing, which coincides with Bitcoin attempting to stabilize around its current price level. For a more positive trend to emerge, the liquidity currently flowing out of the market (or into assets such as oil and precious metals) will ultimately need to return to the crypto market."