February 11 News, as the largest stablecoin by market capitalization, USDT has recently shown rare signals. Its market cap growth, after two consecutive years of expansion, has turned negative for the first time, sparking market concerns about a weakening mid-term trend. Multiple on-chain indicators show that changes in stablecoin supply are becoming a key reference for measuring risk appetite and liquidity in the crypto market.
Data indicates that the 60-day moving average of USDT market cap, as tracked by CryptoQuant, turned negative in February. The last time similar was observed was in Q3 2023. Historical charts suggest that when USDT supply continues to grow, new liquidity often flows into crypto assets; when growth slows or turns negative, it indicates funds are more likely to be withdrawing from the market rather than waiting for a rebound. Analyst Crypto Tice pointed out that a contraction in purchasing power weakens downside support, making short-term rebounds more susceptible to selling pressure.
Looking at specific data, CoinGecko shows that USDT market cap has fallen from approximately $187 billion in early January to $184.3 billion. This change is related to recent large-scale token burns by Tether. On February 10, Whale Alert disclosed that Tether burned $3.5 billion worth of USDT in a single transaction, and last month, another $3 billion was burned. CryptoQuant considers these to be the two largest consecutive burn events in history, reflecting rising demand from investors to convert stablecoins back into fiat currency.
Investor Ted stated that since Q1 2025, USDT supply has entered a decline phase for the first time, which is not a positive short-term signal. However, historical cycles offer some reference: since 2022, periods when the 60-day average market cap change was negative typically lasted about two months and often coincided with Bitcoin consolidations or phase bottoms, such as at the end of 2022 and in the second half of 2023.
Therefore, the current trend may indicate that the market is hovering at lows or continuing to face pressure over the next two months before seeking recovery. Some analysts believe that if the key support level of $63,000 for Bitcoin is broken, it could face a deeper correction. The fluctuations in USDT market cap are becoming an important indicator for observing the mid-term direction of the crypto market.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Funding Rate Drops to 6%, Lowest Level Since Early 2023
The Bitcoin derivatives market has seen a significant decline in the funding rate, dropping to a 30-day percentile of 6%, the lowest since early 2023. This shift reflects a strong trend toward short positions, indicating bearish sentiment and potential market volatility.
BlockChainReporter7m ago
French couple robbed at knifepoint by fake police during home invasion, forced to transfer approximately $1 million worth of Bitcoin
On March 10th, a French couple was attacked at home by three fake police officers armed with knives, forcing them to transfer approximately 900,000 euros worth of Bitcoin. The couple was injured and tied up, and the assailants fled. This case is the latest example of a "wrench attack" in cryptocurrency. Several similar incidents have occurred in France this year.
GateNews8m ago
Investment bank B. Riley initiates coverage on Strategy and Strive, both with a Buy rating, with target prices of $175 and $12 respectively.
Investment bank B. Riley initiates coverage on Strategy (MSTR) and Strive (ASST), both with a buy rating, with target prices of $175 and $12 respectively. Due to the decline in Bitcoin prices affecting market capitalization, both companies' stock prices are below their net asset value, but analysts believe their preferred stock yields are attractive and could drive growth in digital credit financing.
GateNews9m ago
