USDT fell below $1 – That’s how thin crypto liquidity has gotten

The crypto market is at a critical point with its stablecoin liquidity continuing to shrink as the year nears its end. Over the past four weeks, more than $14.20 billion in stablecoins have left the market. Currently, the stablecoin market cap has declined below $300 billion, which is its lowest level in 14 months. That is, the cap plunged from $313 billion to $298 billion, the fastest contraction since June 2022. Additionally, Tether's USDT was trading below $1 at the time of press, showing that the stablecoin's buying power was weakening too. This contraction implies that crypto liquidity in the market is thin and fresh capital is limited to support a bullish recovery. Both Bitcoin [BTC] and Ethereum [ETH] have been averagely on a decline when gauging this month's performance.

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