Key facts
- Glassnode said total stablecoin supply fell $14.2 billion in the 30 days through November 9, the fastest drop since June 2022.
- Glassnode said U.S. spot Bitcoin ETFs saw about $1.6 billion in net redemptions over 20 trading sessions.
- Glassnode said Bitcoin slipped below short-term holders' average cost basis of about $75,600, leaving most recent buyers underwater.
- Glassnode said leverage near the current price has been flushed and wallets holding 100 to 10,000 BTC have started accumulating.
- CryptoQuant said in a separate report that over $3.6 billion in Bitcoin was recently moved to exchanges, potentially to be sold at a loss.
- Glassnode said Goldman Sachs, Citi and Deutsche Bank are backing a $270 million challenge to dominant stablecoin issuers.
Total stablecoin supply fell by $14.2 billion over the 30 days through November 9, the fastest contraction since June 2022, according to a report published November 11 by onchain analytics firm Glassnode. The total supply now sits just below $280 billion.
Stablecoins, tokens typically pegged to the U.S. dollar, serve as crypto's cash: traders park money in them on exchanges and onchain before buying other assets. When the supply shrinks, holders are redeeming tokens for dollars and pulling that money out of crypto, 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 drain is not the only sign of money leaving. U.S. spot Bitcoin ETFs saw about $1.6 billion in net redemptions over 20 trading sessions, the report found, and Bitcoin has traded at a discount on Coinbase, which the report treats as a gauge of U.S. demand. Bitcoin slipped below the average cost basis of short-term holders, about $75,600, leaving most recent buyers underwater, and traded near $73,000 on November 11.
Glassnode pointed to some offsets. The slide has flushed out most leveraged long positions near the current price, buy orders outweigh sell orders in the order book, and wallets holding between 100 and 10,000 BTC have started accumulating. The firm flagged $73,000 as key support and said the broader trend change that began in August remains intact as long as Bitcoin holds above its June low.