What Falling USDT Supply Means for Bitcoin’s Price Recovery

CryptoQuant contributor MorenoDV_ warns in a new analysis that Bitcoin’s rebound is outrunning stablecoin supply, as Tether’s USDT lost nearly $1 billion in market capitalization in five days. With less fresh dollar supply entering the market, the recovery leans more heavily on buyers already in it. Bitcoin’s recovery “is facing a liquidity problem,” the analysis states , because USDT is struggling to return to sustained expansion. During the 2024 and 2025 rallies, the stablecoin’s market capitalization repeatedly grew by billions of dollars across 60-day periods, adding to the dollar pool available for trading and for absorbing sell pressure.