In January 2026, demand for Tether's stablecoin USDT declined significantly. This change raised concerns among experts, as slower adoption could hinder further Bitcoin price appreciation.

However, this slowdown could be temporary, as market experts still believe stablecoin payment volume will reach $56 trillion by 2030.

A comparison with Bitcoin price dynamics reveals a familiar pattern from previous cycles. Rapid growth in USDT market capitalization often coincided with the rise of the flagship cryptocurrency, indicating increased market liquidity. When liquidity growth slowed, BTC typically entered a consolidation phase, and in some cases, a downtrend. CryptoQuant also noted Tether's recent Treasury burn of 3 billion USDT, the first since May of last year. This is the largest stablecoin burn in three years.

USDT is typically removed from circulation when investors exchange it for US dollars, prompting Tether to burn a corresponding amount of digital assets.

If the outflow accelerates, the two-month plateau in the stablecoin market, with a total market capitalization of approximately $308 billion, could be broken, and the market could enter a correction. Such a shift could increase the risk of a broader downturn in the crypto market.