Tether’s USDT supply has declined by 1.3 billion USD, signaling liquidity concerns since USDT is critical for market activities. Factors such as increasing regulatory scrutiny and macroeconomic uncertainties are considered to be driving this contraction.
The decrease in USDT affects Bitcoin’s price stability, which is at approximately 94,900 USD. This trend raises risks of slippage and volatility, impacting investor confidence. Smaller coins might face extreme volatility due to their reliance on stablecoins for trading.