Crypto: Tether Flashes Bitcoin Bottom Signal: Can BTC Stage Another 100%...

Bitcoin price more than doubled the last time Tether's crypto market capitalization dropped by $3 billion in two months, a signal that is flashing again in 2026.

Bitcoin (BTC) may form a bottom in the coming weeks as Tether’s USDt (USDT) market cap dropped to levels that preceded BTC’s 2022 bear market lows.

Tether’s USDt triggers a signal that last time preceded a 100% Bitcoin price rally.

BTC price is testing two major support zones that have historically triggered significant price rebounds.

On Sunday, Tether USDt’s 60-day market cap change was down by $3.1 billion (see chart below), revisiting a historically significant zone that aligned with Bitcoin’s 2022 bear market lows.

The only other time USDT’s market cap declined by $3 billion in 60 days was in late 2022, just as Bitcoin was carving its cycle bottom near $15,500, amid maximum fear and forced selling.

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When USDt’s market cap drops sharply, it implies liquidity withdrawal, risk-off sentiment, or forced redemptions.

“The current 60-day contraction suggests sustained capital outflows, reflecting structural tightening in crypto-native liquidity,” CryptoQuant contributor MorenoDV_ said in a Monday Quicktake analysis, adding:

The chart above shows that after USDT’s 60-day market cap change dropped below -$3 billion at the end of 2022, Bitcoin then climbed to above $31,000 by March 2023, a 100% rally from the $15,500 cycle bottom.

Source: CoinTelegraph