Stablecoin reserves on two of the largest exchanges have dropped sharply, pointing to shrinking liquidity as BTC remains stuck near key support.

According to CryptoQuant analyst Darkfost, Binance's stablecoin reserves fell by roughly $1.55 billion over the past 30 days, while Bybit saw approximately $786 million in outflows, bringing the combined decline to nearly $2.3 billion across both platforms. The exact destination of these funds remains unconfirmed, though possible factors include MiCA-related user migration in Europe, weaker fresh capital inflows, and stablecoins moving into self-custody or onchain yield products.

Darkfost points to declining exchange stablecoin reserves as a sign that fresh liquidity simply isn't entering the market, a trend that's been consistent since the start of the year, with outflows persistently outpacing inflows.