Did Tether and Circle’s $3 billion token minting spree protect Bitcoin from losing $60k?
Despite Tether and Circle minting $3 billion in stablecoins, Bitcoin struggled below $70k as liquidity was used defensively, not for aggressive buying.Summary
Bitcoin recently dropped below $70,000, struggling near the $60,000 support level, even as Tether (USDT) and Circle (USDC) collectively minted over $3 billion in new tokens over three days. This divergence suggests that the increased stablecoin supply represents defensive liquidity accumulation rather than aggressive deployment into risk assets. Data from CryptoQuant shows that net stablecoin flows into exchanges—a key indicator of risk appetite—have reversed since November 2025, indicating capital preservation or withdrawal from trading venues. While stablecoin issuance historically rises during volatility, the current trend aligns with caution, as funds are moved off exchanges into self-custody. This means the capital exists within the crypto ecosystem but is being used for risk management and settlement infrastructure, not for driving spot demand for Bitcoin. Consequently, the market lacks the necessary deployed liquidity to sustain upward price movements until exchange flows decisively shift.
(Source：CryptoSlate)