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Biggest stablecoin Tether (USDT) has shed $4 billion in market cap in just two months, but history suggests that the downturn is nearly over.
Key points:
- Tether’s 60-day rolling market-cap contraction stays near $4 billion in one of its heaviest drawdowns.
- Analysis suggests that the worst of bear-market selling pressure could be over as a result.
- Comparison to 2022 bear-market highlights an ongoing RSI divergence.
USDT drawdown puts “acceleration” of Bitcoin selling in doubt
Onchain analytics platform CryptoQuant in a blog post last week flagged market cap “undergoing one of its sharpest contractions on record.”
“The deterioration has also accelerated at the margin: nearly $870 million of USDT supply disappeared over the latest 11-day period, showing that the contraction is not merely a legacy effect from earlier redemptions,” analysts wrote.
CryptoQuant data puts the 30-day simple moving average (SMA) of 60-day USDT…
