Over the past two months, the reserves of the stablecoin USDT on leading cryptocurrency exchanges have decreased by approximately $9 billion — from around $60 billion to $51.1 billion. This trend raises concerns among analysts, as it indicates a significant outflow of liquidity from the cryptocurrency market.
This is reported by Business • Media
Reasons for the Decrease in USDT Reserves and Risks for the Market
Experts from CryptoQuant explain the recent outflow of USDT as a result of weak activity in the crypto market during January and February. They believe that the reduction in USDT reserves has been one of the main reasons for the sluggish market development at the beginning of 2026. Meanwhile, analysts emphasize the importance of the $50 billion mark, which they refer to as “critical” for stablecoin reserves. If this level is breached, the next support zone, according to their estimates, is around $44 billion.
“Breaking this minimum will signal strong selling pressure, likely pulling major assets like Bitcoin, Ethereum, and XRP into a deeper correction. As the primary liquidity provider in the market, Tether’s condition sets the trend for the entire sector,” the statement reads.
Decrease in On-Chain Activity and Bitcoin Demand Dynamics
Alongside the reduction in USDT reserves, CryptoQuant specialists also note a decline in on-chain activity. The number of active addresses in the USDT network has decreased from a peak of 376,000 to 263,000. This indicates a drop in activity among both retail and institutional market participants, which is confirmed by the decline in the number of unique senders and receivers of the stablecoin.
At the same time, the head of the research department at CryptoQuant, Julio Moreno, noted that demand for spot Bitcoin began to rise in February for the first time since the end of November last year. This trend may signal a gradual recovery of interest in the primary cryptocurrency even amid an overall decrease in liquidity.
Recall that on the night of February 26, 2026, the price of Bitcoin exceeded $70,000, marking an important milestone for the market.