Analysis shows that USDT liquidity reversal supports Bitcoin price

According to CryptoQuant analyst EgyHash, USDT liquidity is the main driving factor behind Bitcoin price discovery. The 60-day changes in USDT market capitalization show that the market sharply reversed from the liquidity tightening from the end of 2025 to the beginning of 2026, presenting a V-shaped recovery, and Bitcoin is currently consolidating in the $77,000 to $78,000 range. The analyst pointed out that the shift from negative to positive liquidity usually signals volatility expansion, and believes the market has shifted from a capital withdrawal phase to an aggressive replenishment phase, providing structural support for current prices. However, the medium-term performance depends on whether new USDT issuance can be converted into spot demand.