Crypto
USDT Contraction May Indicate End of Selling Pressure on Bitcoin
The USDT stablecoin has experienced a significant contraction in market capitalization over the past 60 days, losing nearly $4 billion. This may seem bearish for Bitcoin, as it reduces the available liquidity to support a rebound.
However, CryptoQuant notes that this extreme contraction could signal the end of selling pressure on Bitcoin, potentially marking a bottom for the cryptocurrency. The market lacks fuel, but it might soon lack sellers as well.
The 30-day moving average of USDT's market capitalization variation was -4.88 billion on Monday, with a low of -5.72 billion over 60 days dating back to July 13. Recently, nearly $870 million left the USDT supply in just 11 days.