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