Bitcoin Struggles Below $70,000 Amidst Rising Stablecoin Issuance
- Bitcoin fell below the critical $70,000 level and bounced off $60,000.
- Tether and Circle minted over $3 billion in new stablecoins within three days.
- Tether’s USDT market cap reached $187.3 billion by the end of Q4.
- Over $4 billion in net stablecoin withdrawals occurred from exchanges since November.
- Stablecoin market capitalization peaked at over $300 billion in late 2025.
The crypto market is witnessing a cautious accumulation of liquidity as stablecoin issuance rises while exchange flows decline, indicating a defensive posture among traders. This trend is evident as Bitcoin struggles to gain upward momentum despite increased stablecoin supply.
The lack of aggressive deployment of capital is reflected in Bitcoin’s inability to maintain levels above $70,000, with significant withdrawals highlighting risk aversion among investors.(Source)
