USDT Sends Rare Signal: Where Is Bitcoin in This Cycle?
The market capitalization of USDT has just recorded a 60-day change below -3 billion USD a threshold that has only been breached once in history: at the end of 2022, when Bitcoin hit a low near 16,000 USD amid a sell-off and widespread fear throughout the market.
The difference this time: the signal appears while Bitcoin is still trading in the 65,000–70,000 USD range, after recently reaching an all-time high shortly before.
Stablecoin is considered the "reserve currency" of the crypto ecosystem. When the supply of USDT increases, new money is flowing in.
When it contracts to the scale of billions USD in 60 days, it is a sign of systematic liquidity withdrawal — not short-term volatility
Notably, in a recent trading session, there were three separate buyback transactions of USDT with a total value exceeding 1 billion USD — an event often associated with large institutions withdrawing from the ecosystem.
According to analyst Moreno, such large-scale moves tend to appear closer to exhaustion rather than at the beginning of an extended downturn.
The real question: is this a signal of a bottom forming, or will liquidity continue to withdraw before the market finds its balance?