Author: Helen Partz, CoinTelegraph; Compiled by: Whitewater, Golden Finance

Crypto financial services platform Matrixport stated that the market value and trading volume of Tether USDT have recently fallen by billions of dollars, but this is not enough to indicate the market Bearish signs are emerging.

Tether’s USDT stablecoin has lost 2.8% in market cap since peaking at $141 billion on December 19, 2024, according to CoinGecko.

USDT trading has also fallen sharply in the past few weeks, with daily trading volume plummeting 64% from approximately $154 billion in mid-December to $55 billion on January 6, 2025.

However, Matrixport stated in an X post on January 6 that USDT’s downward trend may be the result of a holiday trading slowdown and should not be related to a bearish turn in the cryptocurrency market.

In the article, Matrixport mentioned that an increase in stablecoin trading volume is generally a bullish indicator for the cryptocurrency market, reflecting the influx of more fiat currencies into the ecosystem.

“When these trends reverse, however, it often signals a consolidation phase for Bitcoin and the broader cryptocurrency market,” Matrixport reported.

Source: Matrixport

Matrixport wrote: "Although Tether's market capitalization has declined recently, trading volume It's also tapering off, but it's probably too early to be bearish."

"These trends may simply reflect the seasonal downturn we'll see in the market soon as we head into the New Year. Will the bullish momentum resume? ”

Matrixport. It's not the only company highlighting the current holiday illiquidity.

On January 4, CryptoQuant analyst Axel Adler said that Bitcoin needs to accumulate more trading volume to generate strong bullish momentum, which may occur after the market recovers from the holidays.

Matrixport's comments about Tether come as the community reacts to earlier reports that linked USDT's market decline to EU cryptoasset market regulation ( the full implementation of MiCA).

While some online reports suggest that European cryptocurrency exchanges should move TEther’s USDT is delisted, but local regulators have yet to give such guidance.

The European Securities and Markets Authority (ESMA), the main watchdog for MiCA compliance, has repeatedly declined to comment on the status of USDT under MiCA, even after the December 30 deadline.

USDT trading also continued across Europe after Coinbase delisted USDT, with exchanges such as Binance saying in late 2024 that they would continue to support USDT on the platform until further notice.

Source: Nostradamus

Many community members on Removed reports, calling such reports fear, uncertainty and doubt (FUD).

One industry observer wrote on X on January 6: “All the ‘news’ about Tether USDT being delisted from major global cryptocurrency exchanges due to the EU MiCA bill is just FUD.”< /p>