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Crypto

USDT Contraction Signals Potential Bottom for Bitcoin

Guavy AI Editorial Team
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BTC USDT
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USDT lost nearly $4 billion in market capitalization over 60 days. This contraction could signal that selling pressure on Bitcoin is nearing its limit.

The decrease in USDT's supply has led to a rare liquidity contraction, with the 30-day moving average of this variation reaching -4.88 billion dollars on Monday. The low was seen on July 13, at -5.72 billion over 60 days.

This is not just a minor detail. Stablecoins serve as a holding tank for the crypto market. An investor can sell Bitcoin, stay in USDT, then quickly return to BTC. When stablecoin supply decreases, part of this liquidity leaves the ecosystem.

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