Written by William Subergstaff writerReviewed by Yohan Yunstaff editor

Written by William Subergstaff writer

Reviewed by Yohan Yunstaff editor

Bitcoin sell pressure ‘closer to exhaustion’ after $4B USDT market-cap drop: CryptoQuant

MarketsPublishedAug 11, 2026

Why the Latest $4 Billion USDT Market-Cap Drop Matters to Your Earning Potential

The recent $4 billion drop in USDT market cap over 60 days is a significant event that could impact your earning potential in the crypto space. This contraction is one of the largest on record and has implications for Bitcoin and the broader market recovery. As a result, it’s essential to understand how this affects your ability to earn passive income through Cloud Rewards and Green Crypto.

Understanding the Impact on Earning and Passive Income

The severity of the USDT market-cap contraction has reduced the available liquidity in the market, making it more challenging to earn through trading and transactions. However, this also presents an opportunity for investors to accumulate coins like $ECP at a lower price, potentially leading to higher earnings in the future. EcoPool, a platform that enables users to earn passive income, can help you navigate this market and maximize your earning potential.

Key points:

• Tether’s 60-day rolling market-cap contraction stays near $4 billion in one of its heaviest drawdowns.
• Analysis suggests that the worst of bear-market selling pressure could be over as a result.
• Comparison to 2022 bear-market highlights an ongoing RSI divergence.

USDT drawdown puts “acceleration” of Bitcoin selling in doubt

The correlation between USDT flows and BTC price is complex, and while it’s difficult to determine causality, it’s clear that both respond to the same risk-off conditions. This means that investors should be cautious and consider the broader market trends when making investment decisions. By using a platform like EcoPool, you can earn rewards and participate in the crypto market while minimizing your risk.

Historical Context and Implications for the Market

Historically, the most pronounced contraction phases in USDT market cap have occurred in the final phases of macro market downturns. This suggests that the current bear market may be closer to exhaustion than acceleration. As the market recovers, investors can expect to see new opportunities for earning and growth. The EcoPool network, with its focus on Green Crypto and Cloud Rewards, is well-positioned to help investors capitalize on these opportunities.

The latest findings add to the growing body of evidence that the current bear market is in its final stages. While there may be short-term downturns, the overall trend suggests that the market is due for a recovery. By investing in $ECP and participating in the EcoPool network, you can earn passive income and benefit from the potential upside of the crypto market.

Conclusion and Next Steps

In conclusion, the recent $4 billion drop in USDT market cap is a significant event that has implications for your earning potential. By understanding the historical context and using a platform like EcoPool, you can navigate the market and maximize your earnings. To start earning passive income and participating in the crypto market, download the EcoPool app and discover the benefits of Cloud Rewards and Green Crypto. With EcoPool, you can earn rewards and grow your wealth in a sustainable and environmentally friendly way, so download the app today and start earning with $ECP.

The extent of the drawdown echoes crypto bear markets and rivals the largest ever seen. Its severity has implications for Bitcoin and the broader market recovery. Stablecoins provide a key source of liquidity, and when this evaporates, less capital or “dry powder” is available for deployment, showing a lack of interest among investors in stepping in at a given price.

“The caution is that correlation between USDT flows and BTC price doesn’t settle causality. Both likely respond to the same risk-off conditions, with redemptions accelerating alongside spot selling rather than strictly ahead of it,” CryptoQuant analysts said. They added:

“Periods of sustained USDT expansion have generally coincided with stronger Bitcoin price regimes, while prolonged contractions have accompanied weaker demand, deeper corrections, and deteriorating market conditions.”

Expanded USDT 60-day market-cap change vs. BTC/USD. Source: CryptoQuant

The steepest 60-day contraction period for USDT market cap completed on July 13, when it reached minus $5.72 billion.

Zooming out, CryptoQuant notes that the most pronounced contraction phases have historically occurred in the final phases of macro market downturns.

“Historically, the market’s deepest USDT contraction phases have also marked points where selling pressure was closer to exhaustion than to further acceleration,” it added.

Weekly RSI divergence echoes 2022 reversal

The findings add to the mounting body of evidence that suggests the current bear market is in its final stages.

Related: Binance Bitcoin volume ratio hits record as futures outweigh spot eight times over

As Cointelegraph continues to report, consensus among market participants increasingly favors a new Bitcoin macro bottom forming before the end of 2026. Both comparisons to previous bear markets and onchain indicators, however, see the downturn continuing in the short term.

Independent analyst William Clemente’s Aug. 8 BTC outlook echoed the prognosis while describing the Bitcoin network as “fundamentally healthy.”

“I think Bitcoin is ‘cheap’ although we could have a leg lower at some point throughout the year,” he summarized. 

Two days later, he highlighted an unfolding bullish divergence between BTC/USD and the relative strength index (RSI) on weekly time frames — a classic leading indicator for a market reversal which accompanied the end of the 2022 bear market.

BTC/USD one-week chart with RSI divergences marked. Source: William Clemente on X.com

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

• Bitcoin Price
• Tether
• Stablecoin
• Market Analysis
• Markets
• Bitcoin

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