USDT Demand Stalls in January, Signaling Capital Outflows from the Market

USDT's market capitalization growth has sharply declined since late November, falling from approximately $15 billion to $3.3 billion according to the 60-day moving average of daily changes. This slowdown correlates historically with Bitcoin price stagnation or downtrends, raising concerns about a potential market correction. Further evidence includes the decline in USDT (ERC-20) supply and its trading below $1, indicating holders are cashing out rather than seeking new opportunities. Compounding this, Tether recently burned 3 billion USDT, the largest burn in three years, which observers interpret as a sign of caution from large players exiting the market due to macroeconomic uncertainty. While these signals are early, their intensification could end the stablecoin market's stagnation around $308 billion and push Bitcoin and altcoins toward a bear market.

(Source：BeInCrypto)