stable coins

Story: Tether Loses $4 Billion in 60 Days as Bitcoin Seller Exhaustion Grows

By Evie Vavasseur

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When Draining Liquidity Might Mean Something Else. Here's the counterintuitive part. CryptoQuant thinks the contraction might actually point to…

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Nearly $15 Billion Gone From Stablecoins in Three Months. Zoom out and the picture gets even starker. It's not just USDT.

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What Needs to Happen Before a Real Recovery. Seller exhaustion alone won't flip the market. Bitcoin could stagnate in a low range for a while,…

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USDT just shed nearly $4 billion in market cap over the past 60 days. That's a big number, and it's making a lot of traders nervous — but the story is more complicated than it…

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On the surface, a shrinking stablecoin supply is bad news for Bitcoin. Fewer USDT in circulation means less dry powder sitting on the sidelines, less capital ready to chase a…

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But CryptoQuant's read on this isn't purely bearish.

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Here's the counterintuitive part. CryptoQuant thinks the contraction might actually point to seller exhaustion rather than just a demand collapse.

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It's a weird paradox. The data looks terrible on the surface, and yet the same data might be flashing an early warning that the worst is nearly done.

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Tether's expansion phases have historically lined up with stronger Bitcoin performance, per CryptoQuant. Right now, the opposite is happening.

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Zoom out and the picture gets even starker. It's not just USDT. Nearly $15 billion has left the broader stablecoin market in less than three months.

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Related: Tim Drapers Shifting Bitcoin Timelines Cant Shake His $250K Conviction

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And that's probably the most important context here. A drop in USDT alone doesn't mean Bitcoin goes up. Both can get hit by the same wave of market distrust.

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Bitcoin's weekly RSI is actually improving right now, even as prices stay fragile. CryptoQuant sees that as reminiscent of patterns from the end of the 2022 bear market.

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Seller exhaustion alone won't flip the market. Bitcoin could stagnate in a low range for a while, or dip again before real demand comes back.

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US Bitcoin ETFs have shown some resilience, with capital still coming in despite BTC's volatility.

The Currency Analytics

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