@zebedsdiah
If Bitcoin falls 20%, the stablecoin market is unlikely to remain immune. Historically, drawdowns trigger capital flight into fiat or sideline assets, shrinking stablecoin supply by 5–10%. The contraction reflects reduced demand for trading pairs and diminished liquidity provision. In 2025, stablecoins are more integrated with DeFi and payments, cushioning the downside but not eliminating it. A sharper decline in BTC would likely accelerate redemptions, especially in Tether, as investors seek safety. Stablecoin supply acts as a barometer for crypto liquidity, and tracking it can help forecast the depth and duration of BTC corrections.
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