The capitalization of the USDT stablecoin has decreased significantly over the past two months. Analysts of the CryptoQuant platform have recorded a decrease in this important indicator by four billion dollars. The thirty-day moving average of this indicator has reached four point eight billion. This key indicator has been in the negative zone since the end of June this year. As of August tenth, the total decrease was three and sixty-four hundredths of a billion. In the last eleven days alone, the capitalization of the popular stablecoin has decreased by eight hundred and seventy million. The USDT supply indicator shows a direct correlation with the current price of the first bitcoin. Such dynamics may indicate a noticeable cooling of the entire cryptocurrency market. Market participants are closely monitoring changes in the volume of major stablecoins. These coins have traditionally been the main indicator of available liquidity in the industry.

On-chain analyst Stacy Moore shared her vision of the current market situation. The expert considers what is happening to be a partial outflow of funds into traditional fiat currencies. Some investors completely leave the cryptocurrency market after bitcoin falls from its peak. Another possible reason is the usual capital rotation between different digital assets. Circle offers holders of its stablecoin more opportunities to generate profitability. However, the capitalization of the USDC itself is also declining at an even faster pace. The supply of this stablecoin has decreased by two tenths of a billion dollars. This figure looks less than the absolute decrease in USDT over the same period of time. But the relative drop turns out to be greater when taking into account the total capitalization of both assets. Major players are actively redistributing their available funds between various instruments.

The analyst explains the current situation by combining several important market factors at once. Some of the free capital simply strives for higher and more predictable returns. The other part of the funds is confidently returning to the usual fiat currencies of investors. The overall demand for stablecoins is noticeably decreasing as speculative activity cools down. The digital asset market is experiencing a period of natural cooling after prolonged growth. Bidders prefer to save money in more reliable and understandable tools. Previously, experts of the CryptoQuant platform had already admitted a noticeable drop in the bitcoin exchange rate. Analysts have called a possible reduction target of fifty-one thousand dollars. A similar scenario remains likely in the coming weeks. Investors continue to carefully evaluate all available macroeconomic data.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.