USDT Market Cap Dips to Lowest Since October as CryptoQuant Sees Seller-Pressure Exhaustion

Tether's (USDT) market capitalization has dropped by roughly $4 billion over the past 60 days, reaching its lowest level since October 2025 at approximately $183 billion. This contraction in liquidity has led CryptoQuant's on-chain analysts to argue that it tends to mark the tail end of selling phases rather than the beginning of new ones.

The shrinking stablecoin supply, which pulled Tether's circulating supply down from a peak of nearly $190 billion in May 2026, is seen as a bullish signal by CryptoQuant. Historical analysis points to a consistent pattern: the deepest USDT supply contractions tend to coincide with seller-pressure exhaustion, not intensification.

The broader stablecoin market reinforces this picture, with total stablecoin market capitalization contracting by around $10 billion during the same period as USDT's decline. For Bitcoin, this implies cautiously constructive implications, with demand metrics tracked by CryptoQuant already showing significant downturns earlier in 2026 before beginning a partial recovery.

Tether's position remains solid despite the drawdown, with the company reporting Q1 2026 profit of $1.04 billion and maintaining a reserves buffer of $8.23 billion above its outstanding token obligations. USDT still commands roughly 58% of the total stablecoin market, giving Tether considerable room to operate even during sharp contraction episodes like the current one.