Tether Market Cap Drops to Lowest Level Since 2025 Amid Seller Pressure Exhaustion
The stablecoin market has seen significant changes over the past two months, with USDT's market capitalization dropping by $4 billion to around $183 billion. This is its lowest level since October 2025, according to CryptoQuant's on-chain analysts.
CryptoQuant's historical analysis suggests that this kind of liquidity drain tends to mark the end of selling phases, not the beginning of new ones. The company's data shows a consistent pattern: the deepest USDT supply contractions tend to coincide with seller-pressure exhaustion, not its intensification.
For Bitcoin, the implication is cautiously constructive. Demand metrics tracked by CryptoQuant had already shown significant downturns earlier in 2026 before beginning a partial recovery. The USDT contraction data adds another data point suggesting the worst of the selling pressure may be behind us, even if fresh buying hasn’t kicked in yet.