The combined market capitalization of the top twelve stablecoins has declined by approximately $2.24 billion over the past ten days. This contraction in crypto liquidity has come alongside an 8% drop in Bitcoin’s price. At the same time, gold and silver have reached new all-time highs, suggesting a broad shift in investor behavior during a period of economic uncertainty.
On-chain data shows that major stablecoins, including Tether (USDT), USD Coin (USDC), and Dai (DAI), have seen reduced circulating supplies. This indicates that capital is not just rotating within crypto markets but is exiting entirely, likely moving into fiat or alternative assets.
According to on-chain analytics firm Santiment, the timing of this stablecoin drawdown matches the price surge in precious metals. Gold has surpassed $2,800 per ounce for the first time, and silver has also hit record levels.
The combined marketcap of the top 12 stablecoins in crypto has declined by $2.24B in the past 10 days alone. This drop has coincided with a -8% drop in Bitcoin's price. A few things to interpret from this:
Capital is rotating into traditional safe havens like gold and… pic.twitter.com/jfk1NSGygA
— Santiment (@santimentfeed) January 26, 2026
Santiment’s post on X pointed out that investors are seeking safety in proven stores of value. “This movement is not limited to retail traders. Institutional capital appears to be rotating into gold as well,” the firm said. The behavior reflects a risk-off sentiment where investors favor assets with long-term value stability.
Stablecoins are often used as a measure of available liquidity in the cryptocurrency market. When traders sell volatile assets like Bitcoin or altcoins, they usually hold funds in stablecoins before re-entering the market.
This time, the decline in stablecoin supply suggests that investors are redeeming stablecoins for fiat instead of waiting on the sidelines. This reduces the amount of capital that could support quick rebounds in crypto prices and slows down potential recoveries.
The drop in stablecoin market cap has affected altcoins more than Bitcoin. With reduced liquidity, investors are less willing to hold or buy riskier crypto assets. This causes altcoins to see sharper and longer-lasting declines.
While Bitcoin remains the dominant crypto asset, its upward potential is also limited when there is not enough capital entering the market. As long as stablecoin supplies continue to shrink, the broader crypto market may remain under pressure.
Santiment also reported that Tether, the issuer of the largest stablecoin, increased its gold holdings in Q4 2025. The company purchased 27 metric tons of gold, worth $4.4 billion. This move signals that even crypto companies are shifting parts of their reserves into traditional safe assets. It reflects growing caution within the industry as macroeconomic concerns rise globally.
Historically, periods of stablecoin market cap growth have come before broad crypto recoveries. When stablecoin supply increases, it shows that new capital is entering the market.
Until that trend reverses, analysts say the crypto sector may struggle to find momentum. The recent $2.2 billion drop in stablecoin capitalization remains one of the most visible signs of a risk-off environment affecting digital assets.
The post Stablecoin Market Falls $2.2B as Investors Move Capital into Gold appeared first on CoinCentral.
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