Total stablecoin supply fell by $14.2 billion over the 30 days through Nov. 9, its fastest contraction since June 2022, according to Glassnode. It now stands at slightly below $280 billion, reducing the liquidity available for crypto trading. U.S. spot Bitcoin ETFs also recorded about $1.6 billion in net redemptions over 20 trading sessions, while Bitcoin fell below the average cost basis of short-term holders, around $75,600, and traded near $73,000. According to Glassnode, the move flushed out most leveraged long positions, and wallets holding between 100 and 10,000 BTC have begun accumulating. The contraction comes as stablecoins face growing competition from traditional finance, with a $270 million initiative backed by Goldman Sachs, Citi and Deutsche Bank, alongside new Federal Reserve rules on reserves and capital.
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