The supply of stablecoins is shrinking at the fastest rate since June 2022. During that time, Bitcoin (CRYPTO:BTC) fell below $20,000. According to Glassnode, the total stablecoin supply, which consists of crypto tokens tied to the U.S. dollar, decreased by $14.2 billion over just 30 days.
Bitcoin is also under pressure, trading at $71,312, down 6.2% over the past week and 43.4% below its all-time high of $126,080 on October 6, 2025. In June 2022, the rapid outflow of dollars from stablecoins coincided with a series of market crashes. So does the drop in stablecoin supply suggest that Bitcoin is heading for a 2022-style bottom, or is the market reading too much into a single statistic?
About $15 Billion Left Stablecoins in One Month, and the Decline Is Accelerating
DefiLlama, a platform that tracks stablecoins across various blockchains, confirms Glassnode’s findings. Today, the total stablecoin supply was $289.4 billion, down from $304.3 billion the month before—a decrease of approximately $14.9 billion, or 4.9%. The decline has also accelerated, with about $4.6 billion of that reduction coming in the last week alone.
Both leading stablecoins shrank over the past week. Tether (CRYPTO:USDT) dropped from $177.7 billion to $175.7 billion, while USD Coin (CRYPTO:USDC) fell from $71.1 billion to $69.7 billion.
Traders often view stablecoin supply as an indicator of crypto purchasing power, since these tokens are readily available on exchanges and can buy Bitcoin without a bank transfer. When holders redeem stablecoins, the tokens are “burned,” or destroyed, and the dollars return to bank accounts, where they can’t buy crypto unless someone transfers them back. We discussed this mechanism earlier when stablecoins shrank by $5 billion in a week in November.
However, a reduction does not show who is redeeming or why. Market makers—firms that manage buy and sell orders on exchanges—often redeem surplus cash, and funds move dollars into Treasury bills when those pay more, so a decline doesn’t prove Bitcoin holders are cashing out. Supply data also misses exchange trades, where a trader buys Bitcoin with USDT and simply hands the token to a seller, and spot Bitcoin ETFs buy with dollars.
Bitcoin Dropped Below $20,000 in June 2022, Reaching Its Lowest Point That November
The 2022 outflow was tied to a wave of credit failures. Terra’s UST, an algorithmic stablecoin that relied on a sister token to hold its value, plummeted to as low as $0.31 in May 2022, shrinking the stablecoin market. By June 2022, crypto lender Celsius had frozen withdrawals, and a court later ordered hedge fund Three Arrows Capital into liquidation.
During this period, Bitcoin fell sharply. It closed at $29,822 on June 1, 2022, rallied briefly to $31,343 by June 6, then nosedived to $19,032 on June 18, marking its first close below $20,000 in the selloff. A temporary relief rally took it to $24,439 on August 13, but Bitcoin kept swinging between the high-$10,000s and low-$20,000s through October.
The low point came after another major failure, the collapse of the FTX exchange in November 2022, and Bitcoin hit its cycle-low close of $15,794 on November 21. The stablecoin drain in June marked the beginning of this turmoil, and the low arrived five months later.
ETF Outflows and a $60,000 Liquidation Cluster Set November 2026 Apart
Bitcoin is now a much larger asset than it was in 2022, with a market cap of about $1.44 trillion, compared with $568 billion on June 1, 2022. While the 2022 redemptions were driven by lender failures and panic selling, the November burns involve both USDT and USDC, and the data doesn’t show who is redeeming.
Spot Bitcoin ETFs, a buying channel that didn’t exist in 2022, are also seeing outflows. Cumulative net inflows have fallen from a peak of $58 billion on October 21 to $55.1 billion, with net outflows on every trading day from November 5 to November 11, including $300 million on November 11, according to SoSoValue. Because these funds sell Bitcoin to cover shareholder redemptions, the outflows directly hit Bitcoin’s price.
Market sentiment began to deteriorate in October, as the Fear and Greed Index dropped fast, the biggest coins lost ground, and holders kept selling at a loss. Bitcoin trades below its 20-day average of $77,736, its 50-day average of $81,140 and its 200-day average of $73,125—a critical threshold many traders use to judge the trend.
Glassnode has identified a significant cluster of liquidation levels near $60,000. A liquidation occurs when an exchange force-sells a borrowed position because losses wiped out the trader’s collateral, so a large cluster could speed up a drop. Bitcoin’s lowest close over the past year was $58,566 on June 30, 2026.
Will Bitcoin Repeat Its June 2022 Slide?In June 2022, when stablecoin supply fell this sharply, Bitcoin dropped from a $29,822 close to $19,032 in less than three weeks, and it didn’t bottom until it reached $15,794 in November 2022. A 2022-style crash seems unlikely this time unless a major failure like Celsius or FTX triggers mass selling. Still, the drain shows that new money is staying away from Bitcoin, so we don’t read it as a floor.
The first test is stablecoin supply climbing back above $294 billion on DefiLlama’s figures, its level a week before November 12, alongside a full week of net inflows into spot ETFs. The second is a daily close back above the 200-day average near $73,125. However, if Bitcoin drops toward Glassnode’s $60,000 cluster, forced selling could push it down to its June 30 low of $58,566.