WuBlockchain
USDT's market capitalization fell $6.6 billion over 60 days, surpassing its decline during the December 2022 redemption wave that followed FTX's collapse, CryptoQuant said in a November 10 report.
Bitcoin's apparent demand also contracted by 284,000 BTC over 30 days, its sharpest decline since March 2025. The Coinbase Premium Index remained negative for 30 consecutive days, a sign of weak US spot demand.
Why it matters
CryptoQuant tracks stablecoin supply as an indicator of potential crypto buying power. A sustained decline means fewer potential sources of new demand to support Bitcoin prices.
Market impact
Similar contractions in Bitcoin demand have historically coincided with local market bottoms. But CryptoQuant cautioned that declining stablecoin liquidity and the absence of a spot-buying recovery leave Bitcoin at risk of a deeper correction.
Frequently asked questions
-
How does the USDT decline compare with the period after FTX collapsed?
CryptoQuant said USDT's $6.6 billion market-cap decline over 60 days exceeded the decline during the December 2022 redemption wave following FTX's collapse.
-
Why does stablecoin supply matter for Bitcoin?
CryptoQuant uses stablecoin supply as an indicator of potential crypto buying power. A sustained decline means fewer potential sources of new demand to support Bitcoin prices.
-
How much did Bitcoin's apparent demand contract?
Bitcoin's apparent demand contracted by 284,000 BTC over 30 days, its sharpest decline since March 2025.
-
What does the Coinbase Premium Index signal about US demand?
The index remained negative for 30 consecutive days, which CryptoQuant described as a sign of weak US spot demand.
-
Have similar Bitcoin demand contractions marked market bottoms?
CryptoQuant said similar contractions have historically coincided with local bottoms. It also cautioned that declining stablecoin liquidity and weak spot buying leave Bitcoin at risk of a deeper correction.
CoinDesk
Glassnode
CoinTelegraph
CryptoSlate
Lookonchain