- USDT market capitalization contracts by $6.6 billion in 60 days, exceeding the decline recorded after the December 2022 FTX collapse.
- Bitcoin’s apparent demand falls by 284,000 BTC, while the Coinbase Premium Index remains negative for 30 consecutive days.
- CryptoQuant’s Bull Score Index drops from 90 to 20 as Bitcoin trades below its 365-day moving average of $76,400.
Bitcoin faces growing liquidity pressure after Tether’s USDT market capitalization dropped $6.6 billion within 60 days. CryptoQuant’s November 10 report identified the contraction as deeper than December 2022’s post-FTX redemption wave. Meanwhile, Bitcoin’s apparent demand fell by 284,000 BTC, while US spot buying remained weak throughout the past month.
USDT Supply Records Its Sharpest 60-Day Decline
CryptoQuant reported that Tether’s market capitalization recorded its largest 60-day contraction since its tracking series began in mid-2022. The $6.6 billion decline also exceeded the contraction following FTX’s collapse in December 2022.
The analytics firm described stablecoin supply as an important measure of potential buying power. Consequently, shrinking USDT supply means fewer available funds for new cryptocurrency purchases.
CryptoQuant also noted that stablecoin growth funded buying activity during the current market cycle. However, the latest contraction shows that this source of liquidity has weakened.
Bitcoin Demand Falls as US Buying Remains Weak
Beyond stablecoin liquidity, Bitcoin’s apparent demand declined by 284,000 BTC over 30 days. CryptoQuant identified this as the sharpest contraction since March 28, 2025. Additionally, the Coinbase Premium Index remained negative for 30 consecutive days.
This reading reflected continued weakness in US spot demand. Bitcoin also traded below its 365-day moving average of $76,400. Meanwhile, its 200-day moving average at $73,200 represented the next support level identified by CryptoQuant.
The firm’s Bull Score Index also dropped from 90 on October 13 to 20. CryptoQuant classified the latest reading as extremely bearish.
Losses and Historical Comparisons Shape Bitcoin Outlook
CryptoQuant reported that traders’ unrealized profit margin fell from 33% on September 22 to negative 6%. Consequently, buyers from one to three months ago now hold coins above their current cost basis.
During previous bull-market corrections, this margin reached approximately negative 12%. CryptoQuant also identified similar demand contractions during March 2025 and June–July 2026. In April 2025, the Bull Score Index also dropped to 20 following tariff-related market losses.
It subsequently recovered to 80 within two months as Bitcoin formed a market bottom. However, CryptoQuant identified the current combination of declining liquidity and weak US buying. The firm noted that Bitcoin could face a deeper correction if these conditions persist.
