Bitcoin News Today: Tether Supply Rises 3.72% as $5.7B Outflows Signal Risk-Off Crypto Shift

In July 2025, Tether (USDT) supply surged as stablecoin outflows from exchanges highlighted a shift in investor behavior. The market capitalization of USDT rose by 3.72% month-on-month to $163.6 billion, marking the largest single-month increase since November 2024 [1]. However, this growth was accompanied by $5.7 billion in stablecoin withdrawals from exchanges, signaling a liquidity contraction despite rising supply [2]. Analysts suggest this imbalance reflects a risk-off market dynamic, where capital is being hoarded off-exchange rather than deployed into crypto trading.

The Bitcoin Stablecoin Supply Ratio (SSR), a metric gauging the relationship between stablecoin liquidity and Bitcoin’s market cap, climbed to 10.48 in mid-July 2025 [3]. This rise, occurring alongside Bitcoin’s price peak near $123,000, indicates that stablecoin liquidity is not expanding in tandem with Bitcoin’s valuation. A higher SSR implies fewer stablecoins are available to support price rallies, as investors prioritize capital preservation over speculative trading [4].

Sentora (formerly IntoTheBlock) data underscores the magnitude of the outflows, noting that July 2025 recorded one of the largest monthly spikes in stablecoin withdrawals since early 2022 [5]. Visualizations from the firm show surging pink bars representing outflows, juxtaposed with stagnant blue inflows, further emphasizing the liquidity gap [6]. This trend suggests investors are hedging against uncertainty, with stablecoins serving as a safe haven amid crypto market volatility.

Glassnode’s analysis of the SSR reinforces the narrative of cautious positioning. The $5.7 billion net outflow of stablecoins reduces the “dry powder” available for crypto purchases, potentially capping upward momentum in Bitcoin and other digital assets [7]. Market participants are advised to monitor SSR levels and exchange balances as indicators of sentiment shifts. A return of liquidity to exchanges and a decline in the SSR could signal renewed risk-on behavior, while continued outflows may prolong a bearish bias.

Investors are urged to adjust strategies in response to these dynamics. In a risk-off environment, preserving capital and avoiding overexposure to volatile assets may take precedence. Traders might consider waiting for liquidity normalization before increasing positions, as the current imbalance limits the potential for sustained price gains [8].

The interplay between stablecoin supply and liquidity remains a critical factor in crypto market analysis. While Tether’s market cap expansion demonstrates growing adoption, the divergence between supply and active liquidity highlights structural challenges. Until investors redeploy stablecoins into trading, the market’s ability to sustain upward trends will remain constrained.

Sources:

[1] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[2] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[3] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[4] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[5] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[6] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[7] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)

[8] [Tether USDT Supply Rises Amid Stablecoin Outflows, Suggesting Possible Risk-Off Pressure on Bitcoin July 28, 2025](https://en.coinotag.com/tether-usdt-supply-rises-amid-stablecoin-outflows-suggesting-possible-risk-off-pressure-on-bitcoin/)