Money doesn’t disappear because it falls; it’s first pulled out — $BTC on Friday it bottomed out at about $67,500, and on the day $ETH fell below $2,000, the chain had already given an early warning.
Glassnode’s November 11 report said that stablecoin supply shrank by $14.2 billion over 30 days, and as of November 9, it was the fastest contraction since June 2022. USDT and USDC accounted for nearly $11 billion of that, with USDT alone down $6.6 billion in 60 days, more than double the post-FTX collapse decline.
Stablecoins are the cash on the market, and redemptions are equivalent to moving money directly out of the market. Glassnode’s original wording was that this round of contraction left the rebound "out of gas"; U.S. spot ETFs also saw net outflows of about $1.6 billion over the same 20 trading days, with both sides bleeding at once.
My view: the price dropping below $70,000 is only the result; the real reason is that the ammo ran out first. When stablecoin supply turns positive again is the first signal that new money is coming back. Before that, just treat any rebound as an oversold correction.
Glassnode’s November 11 report said that stablecoin supply shrank by $14.2 billion over 30 days, and as of November 9, it was the fastest contraction since June 2022. USDT and USDC accounted for nearly $11 billion of that, with USDT alone down $6.6 billion in 60 days, more than double the post-FTX collapse decline.
Stablecoins are the cash on the market, and redemptions are equivalent to moving money directly out of the market. Glassnode’s original wording was that this round of contraction left the rebound "out of gas"; U.S. spot ETFs also saw net outflows of about $1.6 billion over the same 20 trading days, with both sides bleeding at once.
My view: the price dropping below $70,000 is only the result; the real reason is that the ammo ran out first. When stablecoin supply turns positive again is the first signal that new money is coming back. Before that, just treat any rebound as an oversold correction.
