When stablecoin supply contracts, it usually means capital is stepping back, not rotating aggressively into risk. Less USDT in circulation means less dry powder waiting on the sidelines and weaker follow through on rallies.
In this environment, chasing high beta alts and oversized leverage rarely pays. Moves can happen, but they fade quickly because liquidity is thin and conviction is low.
This is a phase for capital protection, patience, and selective positioning. Focus on strength, strong structures, and clear invalidation levels. Let liquidity return before pressing risk.
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$USDT market cap keeps shrinking.
That is not a bullish liquidity signal.
When stablecoin supply contracts, it usually means capital is stepping back, not rotating aggressively into risk. Less USDT in circulation means less dry powder waiting on the sidelines and weaker follow through on rallies.
In this environment, chasing high beta alts and oversized leverage rarely pays. Moves can happen, but they fade quickly because liquidity is thin and conviction is low.
This is a phase for capital protection, patience, and selective positioning. Focus on strength, strong structures, and clear invalidation levels. Let liquidity return before pressing risk.
Survival first. Opportunities come later.
#CryptoMarketRebound