Stablecoin Drain, ETF Outflows Leave Bitcoin ‘Running on Empty’

Crypto’s supply of dollar-linked stablecoins fell by $14.2 billion in the 30 days to 9 November, the fastest contraction since June 2022, leaving the total just below $280 billion. Glassnode says the drop suggests money is leaving crypto, reducing the cash available to buy assets and helping explain why Bitcoin has been struggling.

US spot Bitcoin exchange-traded funds recorded about $1.6 billion in net redemptions over 20 trading sessions, while Bitcoin traded near $73,000, below the roughly $75,600 average cost for short-term holders. Glassnode cited signs that could limit further pressure: leveraged long positions have largely been cleared, buy orders exceed sell orders, and some large wallets are accumulating. It identified $73,000 as key support; meanwhile, banks are competing with established stablecoin issuers and the Federal Reserve has introduced rules on reserves and capital.