Stablecoin market shrinks by $2.2B as investors rotate from crypto to gold
The post Stablecoin market shrinks by $2.2B as investors rotate from crypto to gold appeared on BitcoinEthereumNews.com.
The combined market capitalization of the top stablecoins has declined sharply in recent days, as some capital appears to be rotating out of the cryptocurrency ecosystem and into traditional safe-haven assets like gold and silver. According to recent on-chain analytics, the total market cap of the 12 largest stablecoins fell by approximately $2.24 billion over the past 10 days, reflecting a meaningful contraction in stablecoin supply and liquidity available for crypto trading or re-entry. According to a post on X by cryptocurrency analytics firm Santiment, stablecoin market capitalization has declined significantly, along with Bitcoin’s price. However, demand for gold and silver has increased, indicating that people are moving their money from cryptocurrencies to traditional safe-haven assets amid higher uncertainty. Investors move money from crypto to gold and silver According to Santiment, the reduction in stablecoins has happened at the same time that gold and silver have reached new all-time highs. This further supports the notion that people are choosing safety over risk as uncertainty increases. This is a common occurrence during market stress, so investors tend to shift funds from risky assets, such as cryptocurrencies, to more stable options, such as gold and silver. The analytics firm further stated that, in general, money does not leave the cryptocurrency market immediately after traders sell their Bitcoin or other cryptocurrencies. The money is usually held in stablecoins while investors await market signals or buying opportunities. This time, however, the decline in stablecoin market value indicates a withdrawal of funds from the crypto system and an investment in cash or other commodities. This change is much clearer now, especially since Bitcoin has continued to lose value following a significant market drop in October. During this period, over $19 billion in borrowed crypto bets were wiped out, causing Bitcoin to drop sharply in a single day and then continue…
Filed under: News - @ January 27, 2026 5:25 am