USDT market value experiences historic contraction, BTC rebound faces liquidity pressure

CryptoQuant analyst Moreno stated that the market value of USDT has decreased by approximately $4 billion in the past 60 days, approaching the historically negative level. Over the past 11 days, USDT supply has decreased by approximately $870 million, and liquidity contraction is still accelerating. The continuous expansion of USDT is usually accompanied by stronger price performance of BTC, while the long-term contraction phase corresponds to weak demand, market correction, and decreased risk appetite. The recent rebound of BTC is difficult to sustain, mainly due to the continuous shrinkage of one of the sources of market liquidity.