USDT's 60-day market cap change has dropped to around -$4 billion, signaling a significant contraction in stablecoin liquidity.
Historically, declining USDT supply has coincided with weaker $BTC momentum, as less capital is available to flow into the market.
While this doesn't guarantee a bearish move, it suggests the current rally lacks strong liquidity support.
A recovery in $USDT issuance would be an important signal that fresh capital is returning, improving the outlook for Bitcoin's next major move.
Historically, declining USDT supply has coincided with weaker $BTC momentum, as less capital is available to flow into the market.
While this doesn't guarantee a bearish move, it suggests the current rally lacks strong liquidity support.
A recovery in $USDT issuance would be an important signal that fresh capital is returning, improving the outlook for Bitcoin's next major move.