#BitcoinHashRateSurge Tether's USDT market cap drop is linked to the 'holiday lull'.

USDT's downtrend is the result of a slowdown linked to the holiday season and should not be associated with a bearish turn in the markets, according to Matrixport.

A recent multi-billion dollar decline in Tether's USDt market cap and volumes is not enough to suggest that there will be a bearish turn in the markets, according to crypto financial services platform Matrixport.

Tether's USDt stablecoin has seen a 2.8% market cap drop since it peaked at $141 billion on Dec. 19, 2024, according to data from CoinGecko.

USDT trading has also seen a massive decline in recent weeks; daily volumes have plummeted 64% from about $154,000 $55 billion in mid-December to $55 billion on January 6, 2025.

However, USDT's downward trend is likely the result of a trading slowdown tied to the holiday season and should not be associated with a bearish shift in crypto markets, Matrixport said in a post on X on January 6.