TheBlock
Major stablecoin supply fell $14.2 billion over 30 days, its largest contraction since the 2022 crypto bear market, according to Glassnode. Bitcoin traded around $74,500 as options traders raised the odds of a Christmas finish below $70,000. Separately, Tom Lee-led Bitmine reported a $6.3 billion annual net loss, largely from unrealized digital asset declines.
Why it matters
Glassnode said stablecoin holders were redeeming tokens for dollars and moving money out of crypto, reducing buying power available for a recovery. Total supply stood just below $280 billion, its lowest level since September 2025.
On Derive, the probability of Bitcoin ending Christmas below $70,000 rose to 31% from 15% a week earlier, while the odds of a finish above $80,000 fell to 26% from 53%, according to CEO Nick Forster. Put options accounted for 55% of premiums traded, up from 36% the previous week.
Market impact
U.S. spot Bitcoin ETFs recorded $1.28 billion in net outflows last week, followed by another $296 million on Monday and Tuesday. K33 reported that perpetual futures open interest rose 12% over 30 days to around 353,000 BTC, even as Bitcoin fell 10%. Its research head, Vetle Lunde, said leveraged positions could amplify a squeeze in either direction.
Bitmine's loss for the fiscal year ended Aug. 31 included nearly $6.23 billion in unrealized digital asset declines. Ether fell about 44% during the period, but the company continued buying and said its holdings had reached 6,070,092 ETH, just below its 5% Ethereum supply target.
Frequently asked questions
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Why does shrinking stablecoin supply matter for crypto markets?
Glassnode said holders were redeeming stablecoins for dollars and moving money out of crypto, leaving less buying power available for a market recovery.
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How did Bitcoin options traders' Christmas price expectations change?
On Derive, the probability of Bitcoin finishing below $70,000 rose to 31% from 15% a week earlier. The odds of a finish above $80,000 fell to 26% from 53%.
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How much money left U.S. spot Bitcoin ETFs?
U.S. spot Bitcoin ETFs recorded $1.28 billion in net outflows last week, followed by another $296 million on Monday and Tuesday.
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Why did K33 warn that Bitcoin was ripe for a squeeze?
K33 reported that perpetual futures open interest rose 12% over 30 days even as Bitcoin fell 10%. Research head Vetle Lunde said leveraged positions could amplify price moves in either direction.
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What drove Bitmine's annual loss?
Nearly $6.23 billion of Bitmine's more than $6.3 billion annual net loss came from unrealized declines in its digital assets. Ether fell about 44% during the fiscal year.
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