USDT Supply Contraction Reaches Historic Extreme

CryptoQuant reported that USDT's market cap has fallen to $183 billion, its lowest level since October 2025. This marks one of the deepest contractions in USDT's supply on record, with a decline of roughly $4 billion over the past 60 days.

The analysts at CryptoQuant believe that declining liquidity is weighing on Bitcoin's recovery, although historically such phases have also preceded a fade in selling pressure.

They noted that USDT's stablecoin supply has dropped sharply, nearing historically extreme levels. The 11-day decline of nearly $870 million points to an accelerating liquidity outflow, rather than merely a lingering effect from earlier redemptions.