USDT liquidity stress has returned to levels similar to those experienced during the 2022 crypto market bottom.
The stress indicator, which measures extreme market pressure, typically rises when traders rush to sell risk assets and rotate into stablecoins like USDT.
This behavior drains liquidity from the broader market, creating sharp price drops and heightened volatility.
While elevated USDT liquidity stress could signal opportunity for long-term investors, it's essential to confirm selling exhaustion before making aggressive moves.