CryptoQuant’s latest market report, published on November 10, 2026, warns that Bitcoin may face a deeper correction as stablecoin liquidity and US spot demand deteriorate. Tether’s USDT market capitalization contracted by $6.6 billion over 60 days, marking the largest such decline since the firm’s tracking series began in mid-2022 and exceeding the redemption wave that followed the December 2022 FTX collapse.
Analysts at CryptoQuant described stablecoin supply as a key measure of potential buying power. The shrinking USDT supply means fewer available funds for new cryptocurrency purchases, weakening a source of liquidity that had previously funded buying activity during the current cycle.
Bitcoin’s apparent demand fell by 284,000 BTC over 30 days, the sharpest contraction since March 28, 2025. The Coinbase Premium Index remained negative for 30 consecutive days, indicating continued weakness in US spot demand. Bitcoin was also trading below its 365-day moving average of $76,400, with the 200-day moving average at $73,200 seen as the next support level.
CryptoQuant’s Bull Score Index dropped from 90 on October 13 to just 20, a reading classified as extremely bearish. Traders’ unrealized profit margin fell from 33% on September 22 to negative 6%, meaning buyers from one to three months ago now hold coins above their current cost basis. During previous bull-market corrections, that margin reached around negative 12% before recovering.
CryptoQuant noted similar demand contractions in March 2025 and June–July 2026. In April 2025, the Bull Score Index also fell to 20 following tariff-related market losses, then recovered to 80 within two months as Bitcoin formed a bottom. However, the firm cautioned that the current combination of declining liquidity and weak US buying could lead to a deeper correction if conditions persist.
