USDT Market Cap Drops by $4 Billion, BTC Faces Liquidity Contraction Pressure
USDT liquidity has undergone one of the most severe contraction phases in history, with its market cap decreasing by $4 billion over nearly 60 days, approaching historical lows. In the past 11 days, the supply of USDT has decreased by approximately $870 million, indicating that the liquidity contraction is not solely due to redemptions. Stablecoins are a major source of liquidity in the crypto market, and the continuous expansion of USDT typically accompanies rising BTC prices, while long-term contraction corresponds to weak demand and market corrections. The current decline in BTC is not an isolated event, but occurs against the backdrop of a sustained shrinkage of major liquidity sources, making recent rebounds difficult to sustain. Improving the market environment requires USDT's 60-day change to stabilize, daily supply contraction to slow down, and a return to an expansion phase.
-- Price
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