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
Bitcoin Whale Sends $20M in BTC to Binance, Hinting at Possible Sale
A bitcoin whale transferred 300 BTC worth over $20 million to Binance, prompting speculation about a potential sale. Despite this move, the wallet still holds 200 BTC, currently valued around $13.8 million, suggesting the owner may face losses.
CryptoNewsFlash7m ago
Solo Bitcoin Miner Hits $210K Block Reward in Rare CKpool Win
A solo Bitcoin miner using CKpool secured a rare success, solving a block and earning 3.139 BTC worth about $210,000, despite running a modest setup of 230 TH/s, which has a 1-in-28,000 chance of success daily.
CryptoNewsFlash9m ago
Bitcoin Breaks $72K as $280M Bear Liquidations Test Fragile Truce
Bitcoin extended a sharp intraday move higher on Tuesday, rising about 6% within four hours as risk appetite improved in tandem with a broader rally in global equities after news of a two-week ceasefire between the United States and Iran. The swift price surge coincided with a wave of liquidations i
CryptoBreaking1h ago
BTC drops 0.62% over 15 minutes: exchange net inflows intensify and short-term arbitrage converges to trigger volatility
From 18:00 to 18:15 on April 9, 2026 (UTC), the BTC price return recorded -0.62%, closing in the range of 71857.8 to 72375.1 USDT, with a trading range of 0.72%. Market attention was notably elevated, volatility intensified, and capital moved quickly within a short period. Overall market sentiment has become more cautious, and investors’ willingness to trade in the short term has increased.
The main driving force behind this abnormal move is an increase in net inflows to BTC exchanges during the anomaly window; the 10-minute net flow reached 755.92 BTC, indicating that some investors chose to transfer funds to exchanges to seek arbitrage opportunities in the midst of the volatility issue
GateNews2h ago
BTC 15-minute pump 0.55%: Large on-chain funds inflows and options positioning resonate to lift spot prices
2026-04-09 17:00 to 2026-04-09 17:15 (UTC), the BTC spot market saw a rapid spike with a +0.55% return. The price range was 72,063.9 to 72,518.5 USDT, and the full-period amplitude reached 0.63%. This upswing coincided with rising market attention; volatility clearly intensified, drawing funds into short-term trading in a mix of cautious sentiment and localized increased volume.
The main driving force behind this move was concentrated inflows to exchanges from on-chain large transfers, which pushed up spot market buy orders in a short time. Data shows that, in the past 24 hours, on-chain BTC transfers
GateNews3h ago
