Analysis says USDT liquidity reversal supports Bitcoin price

According to CryptoQuant analyst EgyHash, USDT liquidity is the main driving factor for Bitcoin price discovery. The 60 day USDT market value change shows a sharp reversal in the liquidity tightening from late 2025 to early 2026, presenting a V-shaped recovery. Bitcoin is currently consolidating in the range of $77000 to $78000. Analysts point out that the transition of liquidity from negative to positive usually indicates an expansion of volatility, and believe that the market has shifted from a capital exit period to an aggressive replenishment period, providing structural support for current prices. However, the medium-term performance depends on whether the newly added USDT can be converted into spot demand.