USDT market Cap drops $6.6bn in 60 days as crypto liquidity Tightens
CryptoQuant data shows the decline exceeds the post-FTX redemption wave, while Bitcoin demand fell by 284,000 BTC in 30 days.
Key takeaways
- 1USDT market cap fell by $6.6bn over the last 60 days
- 2Bitcoin demand contracted by 284,000 BTC in 30 days
- 3The Coinbase Premium Index has been negative for 30 days
- 4Liquidity drop is larger than the post-FTX crash wave
Tether’s USDT market capitalisation fell by $6.6bn over the past 60 days. A CryptoQuant report published on 10 November provided the data. The market value for USDT stood at $176.9bn on Tuesday. This decline now exceeds the redemption wave recorded in December 2022. That wave followed the collapse of the FTX exchange and saw large amounts of capital leave the market.
Stablecoin supply serves as a measure of potential buying power in the crypto market. CryptoQuant said the continued drop in supply indicates fewer sources of new demand to support Bitcoin prices. When stablecoin balances fall, it suggests that investors are moving capital into fiat or other assets. This reduction in available liquidity often precedes periods of lower trading volume across major exchanges.
Bitcoin’s apparent demand contracted by 284,000 BTC over the past 30 days. This marks the largest decline in demand since March 2025. The asset was trading at $74,199 on Tuesday, down 0.9 percent in 24 hours. A contraction of this size indicates that market participants are reducing their exposure or exiting positions. The data shows that demand is falling faster than at any point in the previous eighteen months.
The Coinbase Premium Index has been negative for 30 consecutive days. This index tracks the price difference between Bitcoin on Coinbase and other major platforms. A negative reading reflects weak spot demand from investors in the United States. It suggests that US-based institutional and retail buyers are not bidding up prices compared to the rest of the global market. Traders use this premium to gauge whether the US market is leading or lagging the global price trend.
Similar contractions in demand have happened near local market bottoms in the past. However, CryptoQuant said the lack of a recovery in spot buying suggests Bitcoin remains at risk of a deeper correction. Falling stablecoin liquidity adds to this risk by reducing the capital available to absorb selling pressure. The combination of these factors points to a cautious outlook for the near term.
Market participants will now monitor whether stablecoin liquidity begins to return to exchanges. They will also watch if the Coinbase premium turns positive as a sign of renewed US interest. Without these shifts, the data suggests that selling pressure from existing holders may continue to outweigh new capital entering the market. Traders are looking for a reversal in these liquidity metrics before expecting a sustained price recovery.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.