USDT Market Cap Drops $4B, Hinting at Bitcoin Price Bottom

The market capitalization of USDT (US dollar-pegged stablecoin) has dropped by nearly $4 billion over the past 60 days, indicating a sharp contraction in liquidity within the crypto market.

This decline may signal that selling pressure on Bitcoin is nearing its limit, potentially paving the way for a price bottom. However, a confirmed bottom requires a return of liquidity and buyers, as evidenced by stabilizing stablecoin capitalization and increased spot purchases.

Current indicators show Bitcoin's price weakening but its weekly RSI (Relative Strength Index) improving, hinting that the decline may be losing momentum. Nevertheless, demand recovery is still needed for a full rebound.