USDT market cap drops $6.6 billion in 60 days as crypto liquidity tightens.
According to a Nov. 10 CryptoQuants report, USDT's market cap has fallen by $6.6 billion over the past 60 days, surpassing the decline seen during the December 2022 redemption wave following the collapse of FTX, indicating continued tightening of crypto market liquidity. CryptoQuant noted that stablecoin supply is a key indicator of potential purchasing power in the crypto market, and its continued decline means fewer sources of new demand to support bitcoin prices. Meanwhile, apparent demand for Bitcoin has contracted by 284,000 BTC over the past 30 days, the sharpest decline since March 2025, while the Coinbase Premium Index has remained negative for 30 consecutive days, reflecting weak spot demand in the US. Although similar contractions in demand have historically coincided with domestic market bottoms, a decline in stablecoin liquidity and the lack of a recovery in spot buying suggest that Bitcoin remains at risk of a deeper correction.