USDT Market Cap Falls $4 Billion Over Two Months Amid Cooling Crypto Market
The market capitalization of USDT has declined by approximately $4 billion over the past two months, according to CryptoQuant data. The rolling change in USDT stablecoin supply over this period is also around $4 billion, indicating potential capital outflows from the crypto market.
Onchain analyst Stacy Muur cited these metrics as evidence of a possible exit from the market by investors, who are swapping stablecoins for fiat currencies after Bitcoin's price drop from its 2025 peak.
Muur noted that another factor could be capital rotation, with some investors moving to Circle's USDC due to higher yield opportunities. However, she acknowledged that USDC's market cap is shrinking even faster than USDT's over the same period.
The decline in USDT supply is directly correlated with the price of Bitcoin, suggesting an overall cooling of the market.