Falling Stablecoin Issuance Is Negative Sign for Crypto Trading

Analysis Markets Regulation Stablecoins Trading
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“Rising market prices enticed traders to take on more leverage, in the form of borrowing stablecoins, which was then used to buy more crypto,” analysts Sheena Shah and Kinji Steimetz wrote. “Falling market prices were catalyzed by a reduction in crypto liquidity caused by traders closing long crypto positions, followed by redemptions of the stablecoin received.”

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