CryptoQuant analyst Moreno stated that the market cap of USDT has decreased by approximately $4 billion over the past 60 days, nearing its historical lowest level. Over the past 11 days, the supply of USDT has declined by about $870 million, with liquidity contraction continuing to accelerate. Sustained expansion of USDT has typically correlated with stronger BTC price performance, while prolonged contraction phases correspond to weak demand, market corrections, and reduced risk appetite. BTC’s recent rebound is unlikely to be sustained, primarily due to the ongoing shrinkage of one of the market’s key liquidity sources.
USDT market cap shrinks historically, BTC faces liquidity pressure
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Summary
Liquidity pressure mounts as the USDT market cap declines by nearly $4 billion over 60 days, reaching a near-historic low. Over the past 11 days, USDT supply decreased by $870 million, with shrinking liquidity indicating weak demand. The BTC market update shows a recent rebound, but analysts warn it may not be sustained amid ongoing USDT contraction. Key liquidity for BTC appears to be weakening.
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