Stablecoin supply fell $14.2 billion in 30 days, signaling significant investor outflows and reduced market liquidity as Bitcoin demand hits its lowest level since March 2025.
Stablecoin supply fell $14.2 billion in the 30 days to Nov. 11, the biggest drop since June 2022, meaning holders are redeeming into dollars and leaving the market with less fuel for a rally. Bitcoin is already near 11-week lows and 30-day demand dropped by 284,000 BTC, the sharpest since March 2025. A return of stablecoin supply growth would be the first signal of new money, but none is present yet.
USDT, the largest stablecoin by market cap, is trading slightly below its $1 peg, which Glassnode attributes to the same investor pressure rotating out of the stablecoin market. The depeg is slight and framed as redemption pressure rather than solvency trouble, limiting the price relevance for the token itself.
The crypto market faces reduced liquidity as stablecoin supply contracted by $14.2 billion in the 30 days leading to Nov. 11. This decline, the largest since June 2022, indicates investors are redeeming holdings for cash, leaving less capital for potential rallies. Concurrently, Bitcoin demand has fallen by 284,000 BTC over the same period, marking the sharpest decline since March 2025.
Stablecoin supply acts as a measure of money available to buy crypto. The $14.2 billion drop over 30 days means investors are cashing out, which onchain analysts say leaves less fuel for a Bitcoin rally.
Analysts say a turn back to growth in the 30-day stablecoin supply change would be the first sign new money is coming in, but that has not happened yet.
Data shows USDT trading slightly below its $1 peg, which analysts attribute to the same investor redemptions that shrank stablecoin supply by $14.2 billion in 30 days.