USDT recovers in a V-shape, supporting the current Bitcoin price

CryptoQuant states that USDT continues to be the main driver for Bitcoin valuation, while market liquidity has rebounded strongly after the tightening phase from late 2025 to early 2026.

While Bitcoin moves sideways around $77,000–78,000, the 60-day USDT market capitalization data shows a V-shaped reversal trend. The shift from negative to positive liquidity is often an early signal for upward volatility.

According to CryptoQuant’s assessment, the market has shifted from a capital withdrawal phase to liquidity injection again. This development provides a support base for the current price, but the medium-term outcome still depends on whether new USDT will convert into sustainable spot buying demand.

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