It is a time of weak liquidity and trading activity, so the market is slower than it should be. Are investors simply taking a break or are they stepping away from crypto altogether?
Here’s what we know so far.
USDT market cap falls
Tether [USDT] supply is often used as a measure of available liquidity in the crypto market. At the time of writing, the data pertaining to the same seemed weak.
According to CryptoQuant, USDT’s 60-day market cap change fell by around $4 billion, with the decline speeding up in recent weeks. The metric was moving heavily into negative territory, thanks to one of the worst contractions in recent years too.
Analyst Stacy Muur believes that the decline could mean investors are leaving crypto altogether, converting their stablecoins back into fiat. At the same time, changes in stablecoin yields may be making these assets less attractive to investors.
