Tether USDT market cap has dropped 6.6 billion dollars in six days, and that is a quiet warning for the whole market. 📊
CoinDesk, reporting CryptoQuant data, says the market capitalisation of Tether USDT has dropped 6.6 billion dollars over six days, a sharp contraction in the stablecoin supply that traders use to buy crypto. ⚠️ When stablecoin supply shrinks this fast, it usually means money is leaving the crypto system altogether, not rotating between coins, because traders redeem USDT for dollars instead of parking it ready to buy the dip, and that matches the 1.28 billion dollars of ETF outflows last week and the 725 million dollar liquidation wave. My reading is that this is the number to watch into the weekend, because a stablecoin contraction this size has to reverse before any real rally can hold, and a rally on shrinking dry powder is a rally that fades fast.
Is the USDT contraction a red flag, or just traders moving to cash before the PPI print? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #USDT
CoinDesk, reporting CryptoQuant data, says the market capitalisation of Tether USDT has dropped 6.6 billion dollars over six days, a sharp contraction in the stablecoin supply that traders use to buy crypto. ⚠️ When stablecoin supply shrinks this fast, it usually means money is leaving the crypto system altogether, not rotating between coins, because traders redeem USDT for dollars instead of parking it ready to buy the dip, and that matches the 1.28 billion dollars of ETF outflows last week and the 725 million dollar liquidation wave. My reading is that this is the number to watch into the weekend, because a stablecoin contraction this size has to reverse before any real rally can hold, and a rally on shrinking dry powder is a rally that fades fast.
Is the USDT contraction a red flag, or just traders moving to cash before the PPI print? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #USDT
