Bitcoin sell pressure ‘closer to exhaustion’ after $4B USDT market-cap drop: CryptoQuant
Tether’s USDT market cap has fallen about $4 billion in two months, with nearly $870 million disappearing in the latest 11 days and the 30-day SMA of 60-day market-cap change at about minus $4.88 billion. This is one of the sharpest USDT contractions on record and is comparable to past bear-market extremes. The decline matters because stablecoins are a major source of crypto liquidity; shrinking supply suggests less “dry powder” and weaker investor demand, though USDT flows and Bitcoin price likely reflect the same risk-off conditions rather than a strict cause-and-effect. CryptoQuant says the deepest USDT contractions have often appeared near the exhaustion phase of market downturns. Broader signs, including weekly RSI bullish divergence on Bitcoin, are adding to the case that the bear market may be nearing its final stages, even if another leg lower remains possible.
