People aren't converting dollars to BTC, they're converting stablecoins (whatever that means) to BTC. They're supposedly worth a dollar, but people are starting to realize that is very likely not true.
Crypto is going through a stablecoin crisis. The market is waking up and realizing that stablecoins may not be fully backed, and are likely worth less than the dollar face value. So BTC holders are demanding more stablecoins in return for BTC. BTC might not be worth much, but it's becoming clear stablecoins are no dollar substitute.
Stablecoin purchasing power is decreasing, that's all that's happening here.
People aren't converting dollars to BTC, they're converting stablecoins (whatever that means) to BTC. They're supposedly worth a dollar, but people are starting to realize that is very likely not true.
Crypto is going through a stablecoin crisis. The market is waking up and realizing that stablecoins may not be fully backed, and are likely worth less than the dollar face value. So BTC holders are demanding more stablecoins in return for BTC. BTC might not be worth much, but it's becoming clear stablecoins are no dollar substitute.
Stablecoin purchasing power is decreasing, that's all that's happening here.