Stablecoin supply drops $14.2B in 30 days as Bitcoin ETFs log $1.6B outflows
In brief
- Stablecoin supply fell $14.2 billion in the 30 days through Nov. 9, Glassnode said.
- Stablecoin contraction is the fastest since June 2022, with supply just below $280 billion.
- U.S. spot Bitcoin ETFs saw about $1.6 billion in net redemptions over 20 sessions.
- Bitcoin traded near $73,000, below the short-term holder cost basis of about $75,600.
- Glassnode flagged $73,000 as key support and noted accumulation by larger wallets.
Crypto's cash is leaving
Stablecoins (tokens typically pegged to the U.S. dollar) serve as crypto's cash. Traders park money in them on exchanges before buying other assets, so the supply figure matters.
According to Glassnode's report, as reported by Decrypt, total stablecoin supply now sits just below $280 billion. When that number shrinks, holders are redeeming tokens for dollars and pulling the money out of crypto entirely. That's the dynamic which Glassnode said leaves “less fuel for a rally.” The firm said a return to supply growth would be the first sign that fresh money is coming in.
The ETF side looks thin, too.
ETF redemptions and underwater buyers
U.S. spot Bitcoin ETFs saw about $1.6 billion in net redemptions over 20 trading sessions, the report found. Bitcoin has also traded at a discount on Coinbase, a gauge of U.S. demand. It's slipped below the average cost basis of short-term holders (about $75,600, per Glassnode), which leaves most recent buyers underwater.
A separate CryptoQuant report, cited by Decrypt, said over $3.6 billion in Bitcoin was recently moved to exchanges, potentially to be sold at a loss.
Where Glassnode sees support
Glassnode's read isn't entirely one-sided. The firm said the slide has flushed out most leveraged long positions near the current price, and it said buy orders outweigh sell orders in the order book. Wallets holding between 100 and 10,000 BTC have started accumulating, according to the report.
Glassnode flagged $73,000 as key support, right around where Bitcoin traded on Wednesday. The firm also said the broader trend change that began in August remains intact as long as Bitcoin holds above its June low.
That's the line Glassnode's watching.
Frequently asked questions
Why does a shrinking stablecoin supply matter for Bitcoin?
Stablecoins, typically pegged to the U.S. dollar, serve as crypto's cash, and traders park money in them before buying other assets. Glassnode said a shrinking supply means holders are redeeming tokens for dollars and pulling money out of crypto, leaving less fuel for a rally. The firm said a return to supply growth would be the first sign of fresh money coming in.
What Bitcoin price levels is Glassnode watching?
Glassnode flagged $73,000 as key support, near where Bitcoin traded on Wednesday. Bitcoin slipped below the short-term holder cost basis of about $75,600, leaving most recent buyers underwater. Glassnode said the trend change that began in August remains intact as long as Bitcoin holds above its June low.
