USDT's market capitalization declined for the second consecutive month, potentially putting pressure on market recovery.

The market capitalization of Tether's stablecoin USDT declined 0.8% this month to $183.61 billion, continuing the downward trend of approximately 1% in January. This marks the first time since the Terra incident in 2022 that the market has contracted for two consecutive months. Analysts point out that stablecoins are considered an important source of liquidity in the crypto market, and changes in their size are often seen as a barometer of capital inflows and outflows. The continued decline in USDT's market capitalization may reflect capital outflows, putting some pressure on the continued rebound of Bitcoin and the overall market. Data shows that after finding support around $60,000 in early February, the price of Bitcoin rebounded to above $70,000 at one point, but has now fallen back to around $65,000. Meanwhile, the market capitalization of USDC has recovered somewhat from its low point at the beginning of the year, but remains essentially flat overall for the year. (CoinDesk)