Stablecoin supply tracks redemptions—when USDT drops $4B, it means investors are converting stablecoins back to fiat, not buying more crypto.
CryptoQuant data suggests sellers willing to dump Bitcoin may be running out of ammunition. Large drawdowns in stablecoin supply often precede accumulation.
Past $2-5B USDT contractions preceded 3-8 week rallies. But supply can rebound fast if institutions or traders panic-sell again.
Selling exhaustion doesn't mean prices rally immediately. It means the marginal seller has less firepower—and any buying can move price more easily.
If USDT stays below $125 billion for 2+ weeks, it signals persistent demand for actual assets over cash. This would support a price advance.
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