Bitcoin Sell Pressure 'Closer to Exhaustion' After Tether's Market Cap Drop

Tether's market cap has dropped by nearly $4 billion in two months, according to CryptoQuant. This is one of its sharpest contractions on record.

The drawdown echoes crypto bear markets and rivals the largest ever seen. Its severity has implications for Bitcoin and the broader market recovery.

CryptoQuant notes that stablecoins provide a key source of liquidity, and when this evaporates, less capital is available for deployment. This shows a lack of interest among investors in stepping in at a given price.