Based on AMBCrypto, Tether's USDT supply has contracted by $1.3 billion over ten days, raising concerns about crypto liquidity and market dynamics. This decline, from $140.5 billion to $139.2 billion, may be influenced by regulatory scrutiny, reduced trading volumes, and macroeconomic factors like rising treasury yields. The contraction has implications for Bitcoin, which is struggling near key support levels, and suggests a broader market recalibration. The reduced USDT supply could limit market depth, increase volatility, and deter institutional traders, potentially affecting altcoins more severely. The market may face subdued activity unless stablecoin supply is replenished, impacting speculative growth in DeFi and NFT markets.
USDT Supply Drops $1.3B in 10 Days, Impacting Bitcoin Liquidity
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