USDT Market Capitalization Drops to $183 Billion

The market capitalization of USDT has decreased to $183 billion, marking the lowest level since October 2025. Over the past 60 days, the supply of the stablecoin has shrunk by approximately $4 billion, representing one of the deepest contractions in history. In just the last 11 days, the supply of USDT has decreased by nearly $870 million, indicating an acceleration in liquidity outflow. Analysts at CryptoQuant noted that the reduction in USDT liquidity complicates Bitcoin's recovery, although historically, such phases have also preceded the exhaustion of selling pressure. They emphasized that stablecoins remain a primary source of liquidity in the crypto market, and their contraction directly impacts market conditions. Experts believe that there is no direct causal relationship between USDT flows and Bitcoin dynamics, but both metrics respond to the same risk-off conditions. Historically, periods of expanding USDT supply have coincided with phases of Bitcoin growth, while its contraction has been accompanied by weaker demand and deteriorating market liquidity.

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