Binance’s stablecoin war chest has shrunk by about $9 billion over three months, signaling a sustained pullback in liquidity that could keep pressure on crypto markets. Data from on-chain analytics firm CryptoQuant show Binance has recorded three straight months of negative net stablecoin flows — the longest streak since the 2023 bear market. Monthly outflows accelerated over the period: roughly $1.8 billion left in December, about $2.9 billion in January, and nearly $3 billion had exited by mid‑February. As a result, Binance’s stablecoin reserves fell from roughly $50.9 billion in November to about $41.8 billion today. Why it matters: stablecoins act as the market’s deployable capital — the “dry powder” traders use to buy dips, provide liquidity, and fund margin positions. Large and persistent outflows from major exchanges typically indicate capital is exiting the exchange ecosystem rather than being redeployed into other crypto assets, reducing exchanges’ ability to absorb volatility and potentially amplifying price swings. Analysts point to elevated global uncertainty and geopolitical tensions as drivers of more defensive investor positioning, and CryptoQuant’s latest figures show no clear sign of stabilization yet. For traders and market observers, the decline in exchange stablecoin balances is a red flag worth watching: it tightens liquidity buffers just as macro risks remain elevated. Read more AI-generated news on: undefined/news

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