$2.2B Stablecoin Exit Signals Capital Is Leaving Crypto, Not Buying Dips

• Stablecoin market cap fell $2.24B in 10 days as Bitcoin dropped from $95K to $88K.
• Capital exited crypto to fiat and gold instead of rotating into stablecoins.
• A Binance BTC-stablecoin ratio spike was driven by liquidity loss, not new demand.

The combined market cap of the top 12 stablecoins has fallen by roughly $2.24 billion over the past 10 days, according to Santiment. The decline tracked Bitcoin’s drop from around $95,000 to near $88,000 over the same period.

Instead of rotating into stablecoins after selling risk assets, capital is leaving the crypto ecosystem entirely. Bitcoin is trading near $88,500 after a modest daily bounce, but remains down over 3% on the week. Stablecoin supply has continued to contract through this move which shows weak short-term buying power across the market.

Risk-Off Rotation Favors Gold Over Crypto

The stablecoin outflow came alongside strong flows into traditional safe havens. Gold has surged more than 20% in recent months, breaking above the $5,000 level, while silver has more than doubled in market value. 

During the same window, Bitcoin has fallen sharply from its October highs when more than $19 billion in leveraged crypto positions were wiped out in a single day, sending Bitcoin from roughly $121,500 to below $103,000. Since then, risk appetite has remained low.

Tether has been among the largest buyers of gold, acquiring 27 metric tons worth about $4.4 billion in the fourth quarter of 2025 alone.

Stablecoin Drain Weakens Market Structure

Normally, selling pressure in Bitcoin or altcoins pushes capital into stablecoins, keeping liquidity inside crypto. This time, that pattern has broken. Santiment noted that falling stablecoin supply shows investors are cashing out to fiat rather than waiting to buy dips.

This has direct effects on price behavior. Stablecoins are the main source of spot and derivatives liquidity. When supply falls, rebounds tend to stall, and downside moves become harder to absorb. Altcoins feel this pressure first, while Bitcoin tends to hold up better by comparison.

Related: Silver And Gold Reaches New High While Bitcoin Lags Behind

Binance Ratio Spike Sends False Signal

CryptoQuant flagged a recent spike in the Bitcoin-to-stablecoin ratio on Binance that appeared bullish at first glance. Under normal conditions, a rising ratio points to higher risk appetite and stronger buying power.

This move, however, came from the opposite side. Binance saw several billion dollars in capital outflows, hitting both crypto assets and stablecoin balances. The stablecoin decline compressed the ratio mathematically, pushing it higher without any increase in Bitcoin inflows or spot demand.

The result is a misleading signal. Purchasing power was removed, not added. With fewer stablecoins on the exchange, Binance now has less capacity to absorb volatility during sell-offs, reducing dip-buying support.

According to Santiment, past market recoveries usually began only after stablecoin market caps stopped falling and started to rise. Until that happens, upside across the market remains capped, with altcoins likely to continue underperforming Bitcoin.

Related: Saylor’s Strategy Inc. Adds 2,932 Bitcoin in $264 Million Purchase