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. USDT Supply Is Lagging Bitcoin’s Rebound 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. Issuance alone never guaranteed Bitcoin purchases, but it gave demand a more supportive backdrop.

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