On January 14, Matrixport's research note expressed significant slowdown in fiat-to-crypto conversions, possibly due to Federal Reserve's policy shifts.
Matrixport Research
Matrixport noted that recent stablecoin minting data indicates a significant slowdown in fiat-to-crypto on-ramps, particularly before the Christmas holidays.
Analysis by Markus Thielen
Analyst Markus Thielen attributes this dip to the Federal Reserve's hawkish policy shift in mid-December, likely affecting investor sentiment.
Current Market Situation
Despite the end of the holiday period, stablecoin inflows remain tepid, suggesting continued market consolidation. Meanwhile, U.S.-traded Bitcoin ETFs recorded their third consecutive day of outflows this year.
It's early to expect significant market changes as stablecoin minting increases remain minimal.
