Ah, dear reader, the market! A fickle mistress indeed, and in the month of January 2026, she has chosen to be as generous as a miser at a charity ball. Gone are the days when issuers minted billions of dollars in stablecoins daily; now, they seem to have taken a holiday, perhaps to a tropical paradise where the only currency is coconuts.
As we gaze into the crystal ball of stablecoin trends and Bitcoin price movements-both of which seem to share an uncanny resemblance to a poorly choreographed dance-we can’t help but wonder what calamities the market has in store for us next. Is it a bear market? A bull market? Or is it just the market pretending to lose weight by wearing baggy clothes?
The Market Capitalization of USDT: A Cautionary Tale
According to the ever-watchful CryptoQuant, the daily changes in market capitalization of our leading stablecoin, USDT, have been about as exciting as watching paint dry. The 60-day average (60-day market cap change – SMA30) reveals a sharp decline in growth, plummeting from a robust $15 billion to a mere $3.3 billion. A drop so significant that even the most optimistic of investors might suggest a visit to the nearest therapist.
When we juxtapose this with Bitcoin’s price, it becomes clear that their relationship is as strong as a soap opera couple: every rise in liquidity (think of it as their romantic escapades) usually corresponds with Bitcoin rallies. But alas, when the liquidity slows down, well, it’s like watching them argue over who left the toilet seat up. The market stagnates, and in worst-case scenarios, it spirals into a downtrend, much like a bad relationship.
Fear not, dear investor, for the 60-day market cap change – SMA30 hasn’t turned negative yet. However, the ominous clouds of 2026 are sending forth warnings that could make even the most seasoned traders reconsider their life choices.
For starters, the market capitalization of USDT (ERC-20)-which accounts for more than half of the total supply-has declined over the past month, trading consistently below $1. A price point that sounds suspiciously like that of a discount store’s clearance aisle.
Now, let’s not jump to conclusions that USDT is about to depeg; rather, think of it as a subtle hint that capital outflows are afoot. Our stablecoin holders seem less inclined to chase the next big opportunity and more interested in cashing out-perhaps to buy a nice pair of slippers for their newfound leisure time.
Adding more fuel to this fire, Tether Treasury recently burned 3 billion USDT-the first such act since last May, and the largest burn in three years! It appears our friends at Tether are playing a game of financial charades, and the word is “caution.”
“Someone big just completely exited the market,” remarked investor Ted, always the keen observer of the obvious.
These signals may be early, akin to a morning rooster that crows before the sun rises, yet if they intensify, we might witness the end of the stablecoin market’s two-month stagnation at around $308 billion. And should that occur, both Bitcoin and altcoins could find themselves teetering on the precipice of a bear market-an outcome that would send shivers down the spine of any investor who prefers their markets to resemble a sunny day rather than a gloomy thunderstorm.
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2026-01-22 12:36