Stablecoin contraction forces Bitcoin drop despite Fed reserve gains
Summary
Fed bank reserve balances rose $67.5 billion to $2.96 trillion in the week to Nov. 4, as the Treasury General Account fell $79.4 billion. Meanwhile, DefiLlama data showed tracked stablecoin circulation contracting by more than 5.7 billion units, led by a 3.65 billion decline in USDT. Bitcoin fell 5.54% on Nov. 5, but that price move occurred after the reserve measurement period. The figures offer a mixed liquidity picture: higher bank reserves do not demonstrate that funds reached crypto markets or drove Bitcoin demand, while the stablecoin decline’s causes remain unquantified.
