Tether has signaled that, in prior cycles, a Bitcoin rally followed such cues. The market capitalization of Tether’s USDT has fallen by $3.1 billion in the last 60 days. That decline underscores evolving liquidity dynamics in the stablecoin space. If history repeats, investors will watch for renewed volatility in Bitcoin and broader markets.
This decline underscores evolving liquidity dynamics in the stablecoin space and has investors watching for potential BTC moves. That contraction raises questions about liquidity conditions in the broader crypto market. If history repeats, traders will anticipate renewed volatility in Bitcoin and related assets as liquidity shifts unfold across stablecoins and markets. While past patterns are not guarantees, the developing liquidity narrative around Tether’s USDT underscores market participants’ focus on how stablecoins influence Bitcoin’s trajectory and risk appetite across crypto markets.
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