USDT Market Cap Drops $4 Billion Amid Accelerating Redemptions

The USDT market cap has entered one of its sharpest contraction phases on record. The 60-day change in USDT supply has dropped by roughly $4 billion, placing it near the most negative levels observed historically.

Nearly $870 million of USDT supply left circulation over an 11-day stretch, showing the acceleration of redemptions. This pace is not merely a legacy effect from earlier redemptions, but rather an ongoing trend.

The correlation between USDT flows and Bitcoin price does not confirm causation, but both tend to move together during risk-off conditions across digital asset markets. Past instances of steep USDT contraction have often marked points closer to selling exhaustion than to further declines.