The exchange-traded digital asset market has seen considerable outflows this week, marking a total of $107 million, illustrating an accelerated pace of ongoing profit-taking over the past weeks.

CoinShares’ Digital Asset Fund Flows Weekly report stated that Bitcoin took center stage with outflows amounting to $111 million, recording the most significant weekly outflows since March this year.

Claims about crypto exchange Huobi’s financial health and its executives’ legal entanglements have fueled market speculation over the weekend.

Huobi has been witnessing continued outflows from its total locked-up value (TVL), dropping to $2.4 billion from a level of $3 billion in July. As reported by FX168 Financial News, there have now been rumors that several Huobi exchange executives had been taken into custody by the Chinese police.

However, these claims were categorically denied by Justin Sun, a global advisor to the company, who took to social media to debunk the rumors. Despite these assurances, the market sentiment remained skeptical as the outflow continued.

USDT reserves across exchanges

A closer examination reveals that Huobi’s situation may not be isolated. According to data from Glassnode, USDT reserves, on all chains, across most top exchanges, including Huobi, have depleted at a similar rate. This suggests that the concerns around Huobi might be part of a broader market trend rather than an issue specific to Huobi.

The Stablecoin Supply Ratio (SSR) is a vital market indicator that has been steadily climbing since the start of the year, signifying a decrease in the purchasing power of stablecoins.

The SSR is a metric that provides insight into the supply and demand dynamics between Bitcoin (BTC) and the U.S. dollar. The calculation of SSR involves dividing the total supply of stablecoins by the market capitalization of Bitcoin.

When the SSR is low, it indicates that the buying power of stablecoins is high. This means that for each dollar represented by stablecoins, there is a larger portion of Bitcoin’s market cap available for purchase.

On the other hand, a high SSR suggests that the buying power of stablecoins is low. In this scenario, each dollar represented by stablecoins can buy a smaller portion of Bitcoin’s market cap.