Crypto Market Liquidity Crisis Worsens Amid Declining Stablecoin Reserves

The crypto market's liquidity has been dwindling over the past few months, with stablecoin reserves decreasing steadily.

Stablecoins play a vital role in crypto trading as they act as a bridge between fiat and digital assets. Among them, Tether (USDT) remains the largest and most widely used, with its circulating supply often reflecting how much capital is available to move into other cryptocurrencies.

Many analysts are keeping a close eye on the $50 billion USDT reserve level, which is seen as a psychological and structural line of defense. If reserves drop below this mark, it could signal deeper weakness in crypto market liquidity.