Analyst: Macro Headwinds Continue to Pressure, Crypto Market Still Needs Capital Inflow for Stability

BlockBeats News, March 8th, CryptoQuant analyst Darkfost posted, stating, "The macro headwinds continue to put pressure on the crypto market. Against the backdrop of a challenging risk asset environment, the crypto market remains under pressure. The latest macroeconomic data has made the Fed's decision-making more complex. Inflation remains stubborn, demand still shows resilience, while the unemployment rate has started to rise again, making the overall economic situation even more complex. The latest non-farm payroll report also shows a much larger number of layoffs than market expectations, further intensifying uncertainty.

At the same time, market liquidity remains tight. This situation has even affected institutions like BlackRock, which recently had to restrict investor redemptions due to insufficient available liquidity. Therefore, the Fed's policy balance has become even more difficult, and in the short term, it is likely to continue to maintain a wait-and-see attitude.

This liquidity constraint is also affecting the crypto market. The net flow of stablecoins into trading platforms has been negative overall since the beginning of this year. However, this trend seems to be showing signs of stabilization, which is also in line with Bitcoin's attempt to stabilize near the current price level. For a more positive trend to emerge, the liquidity currently flowing out of the market (or flowing into assets such as oil and precious metals) will eventually need to flow back into the crypto market."