February 2 News, the cryptocurrency market has been weakening for four consecutive months, with the total market capitalization falling back to approximately $2.5 trillion. As prices remain under pressure, investors are beginning to use the Tether market share (USDT.D) indicator to assess whether the market is approaching a bottom. Current data shows that market sentiment remains defensive, and short-term recovery signals are still unclear.
USDT.D measures the proportion of USDT in the total cryptocurrency market capitalization. Historical experience indicates that an increase in this ratio often means funds are shifting from Bitcoin and altcoins into stablecoins, reflecting a decline in risk appetite. TradingView data shows that USDT.D rose to 7.4% on February 2, 2026, reaching a two-year high and breaking through the key resistance level of 6.5%. Meanwhile, the total crypto market cap fell below an important support line, which is viewed as a bearish signal.
Investor Crypto Tony pointed out that while the dominance of USDT is rising, Bitcoin remains in a downtrend and is still far from its historical high range, suggesting the market may not have bottomed out yet. Trader Tim believes that if USDT.D retests 6.5% and continues to rise, the target could be 9.5%. Looking back at 2022, this level appeared around the market’s final bottom, implying that the current environment may still face further adjustments.
On-chain liquidity is also weakening. CryptoQuant data shows that the average amount of stablecoins flowing into exchanges over the past 30 days has significantly decreased. In October last year, the average monthly inflow was about $9.7 billion, but it quickly declined afterward and continued to decrease into early 2026. The outflow of funds indicates that investors are not only shifting into stablecoins but also withdrawing from the market, waiting for clearer directions.
Analyst Darkfost stated that the fund cycle between stablecoins and Bitcoin has noticeably weakened, and long-term liquidity shortages are suppressing price performance. Only when USDT.D declines, stablecoins flow back in, and Bitcoin demand recovers, might the market show more reliable reversal signals. Currently, it appears to be more a test of patience and risk management.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
USDT supply hits fresh $188b ATH as Tether tightens grip on stablecoins
Tether CEO Paolo Ardoino says USDT supply has hit a record $188b, cementing the stablecoin's dominance as broader stablecoin liquidity sits near all-time highs.
Summary
Tether CEO Paolo Ardoino says USDT supply has reached a record $188 billion.
The new peak comes weeks after stablecoins hit a
Cryptonews2h ago
Grayscale Research Head: Bitcoin Rally Above $76K Could Signal Start of Bull Market Phase One
Grayscale research head Zach Pandl analyzes Bitcoin's rebound from a February low, using the realized price metric to show recent buyers at breakeven and hint at an early bull phase, with a reported bottom around $65k-$70k.
Grayscale’s Pandl: Bitcoin hit ~63k in Feb, rose to ~76k; realized price ~74k shows recent buyers breakeven, hinting at early bull phase and a bottom around 65-70k.
GateNews2h ago
Scammers Impersonating Iranian Officials Demand Bitcoin and USDT from Ships in Strait of Hormuz
Gate News message, April 21 — Scammers posing as Iranian officials are demanding Bitcoin (BTC) and Tether (USDT) as transit fees from ships in the Strait of Hormuz, according to a warning from MARISKS, a Greece-based maritime risk management firm. The scheme falsely promises "safe transit
GateNews2h ago
Bitcoin, Ethereum and Solana ETFs Record Positive Net Inflows on April 21
Gate News message, according to the April 21 update, Bitcoin ETFs recorded a 1-day net inflow of 3,599 BTC (approximately $272.59 million) and a 7-day net inflow of 18,914 BTC (approximately $1.43 billion). Ethereum ETFs showed a 1-day net inflow of 34,380 ETH (approximately $79.25 million) and a 7-
GateNews2h ago
Fidelity and Capital Group Become Strive's Two Largest Shareholders
Gate News message, April 21 — Fidelity and Capital Group have become the two largest shareholders of Strive, a Bitcoin treasury company, according to CEO Cole Macro. The two firms collectively hold ASST shares valued at approximately $152.8 million, as confirmed by the company's latest
GateNews3h ago
Charles Schwab to Launch Bitcoin and Ethereum Trading, Releases Educational Content on BTC
Charles Schwab plans to expand into crypto, offering Bitcoin education and direct BTC/ETH trading, allowing customers to buy Bitcoin in accounts; analysts call it a major mainstreaming moment.
Schwab announces an expansion into cryptocurrency with Bitcoin education and direct BTC/ETH trading, enabling clients to hold Bitcoin in their accounts; analysts view this as a turning point toward mainstream adoption.
GateNews3h ago
