Bitcoin sell pressure ‘closer to exhaustion’ after $4B USDT market-cap drop: CryptoQuant
Bitcoin analysis suggested that sell pressure would not increase given the historically large contraction in USDT market cap over a 60-day period.
Recent Bitcoin analysis has suggested that sell pressure is nearing its limit after a $4 billion drop in the USDT market cap, according to CryptoQuant. The largest stablecoin, Tether (USDT), has seen its market cap contract by nearly $4 billion in just two months. Onchain analytics platform CryptoQuant flagged this sharp contraction as one of the most significant on record.
The 30-day simple moving average (SMA) of 60-day USDT market-cap change is currently at minus $4.88 billion as of Monday. The extent of this drawdown has similarities to previous crypto bear markets and rivals the largest ever seen. This contraction is believed to be nearing an end, as stablecoins provide a crucial source of liquidity.
When it evaporates, less capital is available for investment, leading to a lack of interest among investors. CryptoQuant analysts have also noted that periods of sustained USDT expansion have typically coincided with stronger Bitcoin price regimes, while prolonged contractions have accompanied weaker demand and deeper corrections.
The steepest 60-day contraction period for USDT market cap took place on July 13, reaching minus $5.72 billion. Historically, the deepest USDT contraction phases have marked points where selling pressure was closer to exhaustion than further acceleration. This analysis suggests that the current bear market is likely in its final stages, with consensus among market participants favoring a new Bitcoin macro bottom before the end of 2026.
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