Bitcoin News Today: Bybit Report Shows USDT Reserves Surpass BTC Amid Stablecoin Shift

Bybit's latest Proof-of-Reserves report reveals a significant shift in user asset preferences, with USDT reserves now at 102% as of December 17, 2025, outpacing BTC reserves, which stood at 105% in the same report. This data highlights growing demand for the stablecoin amid broader crypto market volatility. The report, independently verified by cybersecurity firm Hacken, underscores the exchange's commitment to transparency and user trust.

The increase in USDT-backed assets aligns with broader market trends, as stablecoins continue to play a critical role in absorbing crypto market turbulence. While Bitcoin and Ethereum have faced ongoing ETF outflows, XRP has seen steady inflows, reflecting divergent institutional and retail sentiment across the crypto asset class according to market analysis.

On-chain data suggests that investors are increasingly favoring stablecoins like USDT as a hedge against price swings in riskier assets such as Bitcoin and Ethereum. Bybit's 102% USDT reserve ratio provides reassurance to users amid concerns over liquidity and exchange solvency.

Shift in Investor Behavior

The move toward USDT reflects a broader trend of investors seeking stability amid a crypto market that has struggled with prolonged volatility and bearish sentiment. Bitcoin ETFs recorded $158 million in outflows last week, while Ethereum ETFs posted $76 million in outflows over the same period according to market data. These numbers suggest that traditional crypto investors are reducing exposure to the leading digital assets in favor of more predictable alternatives like stablecoins.

XRP, on the other hand, has defied the broader trend, with its spot ETFs posting $13 million in inflows last week. This divergence highlights the nuanced dynamics in crypto demand, with some altcoins still attracting institutional attention despite a generally weak market according to market analysis.

The Bybit report also reveals that USDC reserves sit at 112%, while ETH reserves are at 101%, both of which exceed the standard 1:1 backing ratio. This indicates a consistent strategy by the exchange to maintain a buffer in case of sudden liquidity demands from users as reported.

Market Implications

The increased preference for USDT and other stablecoins could have broader implications for the crypto market structure. As stablecoin usage grows, so too does their role in facilitating trading, hedging, and liquidity provision across digital asset markets. This could further consolidate their position as the backbone of the crypto ecosystem according to industry experts.

The recent performance of Bitcoin and Ethereum has also raised questions about the sustainability of current trends in ETF flows. With Bitcoin struggling to break above $90,000 and Ethereum hovering near $3,000, the outflows from ETFs suggest that retail and institutional investors are becoming more cautious according to market analysis. However, technical indicators like the RSI and MACD remain mixed, leaving open the possibility of a rebound if broader market conditions improve.

Bybit's regular publication of its Proof-of-Reserves data-verified monthly-has helped reinforce confidence in its solvency and transparency practices. The exchange's 29th report is part of a broader industry shift toward accountability, with more platforms publishing similar data to build trust and meet regulatory expectations as reported.

What This Means for Investors

Investors should closely monitor the ongoing shift in preference from Bitcoin and Ethereum to stablecoins and XRP. This trend could signal a more risk-averse approach among investors, especially as macroeconomic uncertainties persist. For exchanges, maintaining strong reserve ratios is becoming a key differentiator in an increasingly competitive landscape as observed.

For those holding Bitcoin or Ethereum, the continued ETF outflows may mean that further price consolidation or even downward pressure is likely in the near term. However, XRP's inflows indicate that some investors remain optimistic about its long-term potential, despite the broader bearish sentiment according to market analysis.

Bybit's 102% USDT reserve ratio also serves as a reminder of the importance of liquidity buffers in digital asset markets. As stablecoin adoption continues to grow, so does the need for robust exchange infrastructure to ensure that user funds are secure and easily accessible according to industry experts.