Bitcoin price: Top stablecoins, tether and USD coin, shrink, posing risk to BTC
The shrinking market capitalization of top stablecoins like Tether and USDC indicates cash is leaving the crypto market, potentially hindering Bitcoin's price bounce.Summary
The combined market capitalization of the top two dollar-pegged stablecoins, Tether (USDT) and USD Coin (USDC), has contracted to its lowest level since November, signaling that traders are withdrawing fiat currency from the crypto market rather than holding stablecoins to buy dips. USDC led this decline, losing over $4 billion in ten days, while Tether also saw a reduction. This outflow of cash, which is often used as the primary liquidity source for crypto purchases, raises concerns about the sustainability of market gains and could lead to weaker or slower rebounds for Bitcoin and other cryptocurrencies. Analysts suggest this trend might also reflect investor frustration over regulatory delays, specifically concerning the stalled CLARITY Act in the U.S. Senate, which is seen as a potential upside catalyst.
(Source：CoinDesk)