Tether USDt Hits Record $187B Market Cap In Q4 Despite Crypto Downturn

Cryptocurrency

Summary:

USDt added $12.4 billion in Q4 to reach a $187.3 billion market cap, increasing users and onchain activity even as rival stablecoins declined after October’s liquidation event.

Tether's dollar-pegged stablecoin USDt expanded to a record $187.3 billion market capitalization in the fourth quarter of 2025, even as the broader crypto market slid following October's liquidation cascade.

According to its latest quarterly report, the USDt (USDT) market cap grew by $12.4 billion in Q4.

Data shows that USDt has been widening its dominance while competitors retreated.

After the major liquidation event on Oct. 10, the market cap of Circle's USDC (USDC), the second-largest stablecoin, fluctuated throughout the rest of Q4 but closed the period largely unchanged. Ethena's synthetic dollar USDe, ranked third among stablecoins at CoinMarketCap, dropped by 57%.

USDt market cap. Source: Tether

USDt onchain activity hits records

Onchain activity also reached new highs. The average number of monthly active USDt wallets climbed to 24.8 million, representing almost 70% of all stablecoin-holding wallets. Quarterly transfer volume surged to $4.4 trillion, while the number of onchain transfers rose to 2.2 billion.

Furthermore, Tether reported total reserves of $192.9 billion at the end of Q4, up $11.7 billion from the previous quarter, leaving net equity of $6.3 billion. Its exposure to US Treasuries increased to $141.6 billion, placing it among the biggest holders globally and ahead of several sovereign nations.

Tether buys more US Treasuries. Source: Tether

The data also points to a relatively stable user base. About two-thirds of USDt supply is held in savings wallets and centralized exchanges, while the remaining third supports activities tied to payments, remittances and decentralized finance.

USDt is also the most commonly used stablecoin in illicit transfers. Bitrace reported that $649 billion in stablecoins, or about 5.14% of total stablecoin transaction volume, flowed through high-risk blockchain addresses in 2024, with Tron-based USDt accounting for more than 70% of the activity.

Tether has stepped up efforts to curb illicit use, launching collaborative programs with TRM Labs and Tron to monitor and freeze illicit funds.

Tether launches GENIUS Act–compliant stablecoin

In January, Tether launched USAt, a dollar-pegged stablecoin built specifically for the US market. Issued by Anchorage Digital Bank, USAt is a stablecoin compliant with the US GENIUS Act, with $10 million initial supply on Ethereum.

On Monday, Tether and Opera partnered to broaden access to digital payments in emerging markets by integrating USDt and Tether Gold (XAUT) into Opera's MiniPay wallet.

Source: COINTELEGRAPH

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Economic

Cryptocurrency

Policy Clarity Removes A Key Assumption

Bitcoin sold off sharply after U.S. Treasury Secretary Scott Bessent told lawmakers that the federal government lacks the authority to buy Bitcoin or compel banks to support the crypto market. Speaking before the House Financial Services Committee, Bessent stated that neither the Treasury nor the Financial Stability Oversight Council has the mandate to backstop digital assets. That clarification removed a lingering assumption among some investors that authorities might step in during periods of acute stress, triggering a renewed wave of selling.

The immediate market reaction pushed Bitcoin below $71,000, extending losses from earlier in the session. While prices later stabilized after approaching the psychologically important $70,000 level, the damage to sentiment was already evident.

From Speculation To Systemic Anxiety

The policy signal landed amid already fragile conditions. Bitcoin is down about 18% year to date and has recorded its fourth consecutive monthly decline after a sharp drop last weekend. The latest leg lower reflects more than a technical move. It underscores a shift in perception about crypto’s role during market stress. Without the prospect of official support, Bitcoin increasingly trades like a high-risk speculative asset rather than a hedge.

Notable investor Michael Burry amplified those fears, warning that a sustained decline could trigger a “death spiral” of forced selling and value destruction. He argued that Bitcoin has failed to behave like a debasement hedge comparable to gold, instead revealing itself as an asset driven primarily by speculation.

Broader Markets Add Downside Pressure

The crypto slump has unfolded alongside broad-based selling across global markets. Risk assets weakened as investors reassessed rate sensitivity and liquidity conditions, with technology shares and other growth assets under pressure. The crypto market, already sliding for months due to whale selling and forced liquidations, proved especially vulnerable once cross-asset stress intensified.

Additional uncertainty has come from monetary policy expectations. President Donald Trump’s decision to nominate Kevin Warsh as the next Federal Reserve chair has been interpreted by markets as a potentially more hawkish shift, reinforcing concerns about tighter financial conditions for speculative assets.

Flows And Positioning Show Capitulation, Not Accumulation

Market data suggests investors remain focused on reducing exposure rather than positioning for a rebound. Analysts at 10X Research noted that after Bitcoin broke below the $73,000 support level, sentiment shifted meaningfully and flows indicate that buyers are not yet stepping in. Deleveraging and position unwinding continue to dominate, a pattern consistent with late-stage corrections rather than early recovery phases.

Ether and other major tokens have followed Bitcoin lower, reflecting a strong correlation across the digital asset complex rather than isolated weakness. The broader crypto market remains under pressure as confidence erodes and liquidity thins.

Technical Levels Offer Little Comfort For Now

Some strategists argue that the mid-$70,000 region could still act as a reference zone, given its role as a prior high in March 2024 and a low during the tariff-driven sell-off in April 2025. However, even proponents of selective dip-buying caution that downside risks persist. With positioning risk still elevated in traditional markets, spillovers into crypto remain likely.

Bitcoin’s latest slide illustrates a deeper issue than price volatility. The Treasury’s message has clarified that digital assets stand outside the traditional financial safety net, leaving the market to absorb shocks on its own. Until confidence stabilizes and a credible catalyst emerges, Bitcoin’s trajectory appears tied to broader risk sentiment and the ongoing unwinding of speculative excess rather than any imminent policy relief.

Source: Yahoo Finance

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Samantha Luan

Political

Economic

The latest revision of UN World Population Prospects reveals that demographic shift is no longer a distant projection but an accelerating reality across parts of Asia, with the share of people aged 65 and over rising fast in several countries.

As Statista's Tristan Gaudiaut reports, this trend poses a significant challenge in the region for labor markets, public finances and care systems within a single generation.

The figures (UN medium-scenario projections) show Japan already far ahead, as older adults made up already around 29 percent of the population in 2020, and are projected to surpass 30 percent in the coming years: 31.1 percent by 2030 and 35.4 percent by 2040. But, as our infographic shows, the more striking story is the pace of change elsewhere.

You will find more infographics at Statista

South Korea and China are among the standout accelerators.

Both countries are expected to see their 65+ population shares more than double between 2020 and 2040. In South Korea, this figure is projected to surge from 15.8 percent (2020) to 33.8 percent (2040), while in China, it is expected to rise from 12.7 percent to 26.6 percent.

Those trajectories mirror intensifying national concerns about future labor supply and pension burdens, amid persistent low fertility and a shrinking workforce.

Meanwhile, rapid ageing is not confined to the region's richest economies. Thailand and Vietnam start from lower baselines, yet both trend sharply upward by 2040.

Both South-East Asian countries are projected to see their 65+ population shares double in twenty-years: Thailand to 25.6 percent and Vietnam to 15.8 percent.

Source: Zero Hedge

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Political

Canada’s government is set to scrap its planned 2035 ban on new internal combustion engine cars, shifting its strategy toward promoting electric vehicles through new incentives and stricter fuel standards.

According to reports citing government and auto industry sources, the Mark Carney administration will officially announce a new automotive strategy that pivots away from a hard deadline for phasing out gasoline-powered vehicles.

A New Strategy: Subsidies and Tighter Standards

The new plan replaces the 2035 ban with a combination of consumer incentives and industry regulations. Key components of the new policy are expected to include:

• Tax Relief for EV Buyers: A subsidy of C$5,000 (approximately $3,660) per electric vehicle to encourage adoption.

• Infrastructure Investment: A C$1.5 billion fund dedicated to building out Canada's EV charging infrastructure.

• Stricter Fuel Efficiency Rules: New, potentially tighter fuel efficiency standards will be implemented for all new vehicles.

This approach signals that the government remains committed to transport electrification but is changing the method to achieve its goal.

Responding to Auto Industry Pressure

The policy shift is seen as a major concession to Canada's automotive industry, which strongly opposed the previous EV mandates. The original targets required EVs to account for 20% of sales in the near term, rising to 60% by 2030 and a full 100% by 2035.

Automakers argued these goals were unrealistic and impossible to achieve within the proposed timeline. They also raised concerns that a forced transition to EVs would be expensive for consumers and limit their vehicle choices.

Protecting Canadian Auto Jobs from US Tariffs

Another critical driver behind the new strategy is a move to protect the domestic auto sector from U.S. trade policy. The government plans to prioritize support for companies that manufacture cars in Canada, aiming to safeguard thousands of jobs.

This measure is a direct response to tariffs imposed by U.S. President Trump last year on foreign-made automobiles, creating pressure on Canada's export-oriented auto industry.

A Mandate in Disguise?

While the direct ban is being removed, it remains uncertain if the auto industry will fully embrace the new terms. The use of stringent fuel efficiency standards has been employed elsewhere as an indirect way to mandate EV sales.

California offers a prominent example. The state has implemented such demanding emissions rules for light vehicles that it is difficult for most carmakers to comply without selling a significant number of zero-emission vehicles. This raises the question of whether Canada's new policy will achieve a similar outcome, effectively pushing the market toward EVs without an explicit ban.

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A Breakthrough Announcement With Unsettled Details

Less than a week after India finalized a trade pact with the European Union, U.S. President Donald Trump announced a separate agreement with Indian Prime Minister Narendra Modi, framing it as a landmark reset in bilateral trade relations. Washington said it would slash tariffs on Indian goods to 18% from 50%, while India would cut tariffs on U.S. goods to zero, open its agricultural market, replace Russian crude with U.S. and Venezuelan supply, and purchase $500 billion worth of American goods.

New Delhi welcomed the reduction in U.S. tariffs, with Modi publicly expressing appreciation for Trump’s gesture. However, beyond this shared optimism, substantial gaps have already emerged between what Washington claims has been agreed and what Indian officials are prepared to confirm. Economists at Oxford Economics have warned that several U.S. claims remain unverified by Indian authorities and appear unrealistic, raising the risk of U.S. backtracking if expectations are not met.

Tariffs And The Risk Of Reversal

The uncertainty is heightened by precedent. Just last month, the Trump administration raised tariffs on South Korean imports after accusing Seoul of delaying legislative approval of an earlier trade agreement. Analysts at Nomura described the India deal as a meaningful breakthrough, but cautioned that no agreement is secure under an administration willing to reverse course if implementation lags.

This dynamic creates a fragile foundation. The deal’s political announcement has moved faster than the underlying technical negotiations, increasing the likelihood that future clarifications could expose disagreements rather than cement consensus.

Agriculture Becomes The First Fault Line

The most visible point of friction has emerged in agriculture. India’s Commerce and Industry Minister Piyush Goyal stated that the agreement would fully protect sensitive sectors such as agriculture and dairy, signaling clear limits to market liberalization. U.S. officials, by contrast, insist that India will remove both tariff and non-tariff barriers on a broad range of agricultural products, with U.S. Trade Representative Jamieson Greer describing zero tariffs on items such as nuts, fruits, vegetables, wine, and spirits as a major win.

This disagreement reflects deeper domestic constraints in India. Farming remains the primary livelihood for roughly 42% of the population, making it a politically charged sector. The Modi government’s failed farm reform push in 2021, which was withdrawn after prolonged protests, remains a cautionary memory. With key state elections approaching in West Bengal, Tamil Nadu, and Kerala, all regions with strong farm lobbies, India is likely to proceed cautiously rather than accept sweeping agricultural concessions.

From a market perspective, analysts warn that a surge of cheaper imported food could disrupt domestic producers, weaken incentives for local value addition, and ripple through India’s fast-moving consumer goods ecosystem. These risks make agriculture a structural constraint rather than a negotiable detail.

Energy Security And Russian Oil Dependence

Energy has emerged as an equally contentious issue. Washington’s demand that India stop importing Russian crude and replace it with U.S. or Venezuelan oil runs directly into India’s energy security calculus. Russia remains India’s largest crude supplier, shipping around 1.06 million barrels per day in January, according to Rystad Energy. Russian oil trades at a steep discount due to sanctions, making it significantly cheaper than U.S. or Middle Eastern alternatives.

Analysts at Kpler estimate Russian Urals crude is priced roughly $11 per barrel below Brent, while Middle Eastern grades cost up to $9 more. Replacing Russian supply would raise India’s import bill, compress refining margins for state-owned companies such as Indian Oil and Bharat Petroleum, and worsen current account pressures at a time when capital outflows remain a concern.

Strategically, India is also unlikely to abandon its long-standing relationship with Moscow. Experts at Chatham House argue that New Delhi will balance geopolitical pressure with economic self-interest, suggesting that full compliance with U.S. demands on energy is improbable.

The Ambition To Buy $500 Billion Of U.S. Goods

Adding another layer of strain is Washington’s expectation that India will buy $500 billion worth of American goods. India’s total goods imports stood at $720 billion in fiscal year 2025, with imports from the U.S. accounting for just $45.3 billion. Even spread over several years, reaching half a trillion dollars would require a dramatic reorientation of India’s trade structure.

Indian officials have hinted at increased purchases in sectors such as energy, nuclear power, aviation, and data centers, but have offered no concrete timeline or breakdown. Analysts widely view the figure as aspirational rather than operational, noting that it risks becoming a political benchmark rather than an achievable trade target.

Negotiations Still In Motion

Neither side has announced a formal signing date, with Indian officials indicating that a joint statement will follow once details are finalized. Risk consultants have advised investors to treat current pledges as opening positions rather than settled outcomes, warning that unresolved differences on agriculture, energy, and import commitments could reignite friction as talks continue.

The U.S.–India trade deal underscores the growing strategic importance of the bilateral relationship, but it also highlights the limits imposed by domestic politics, economic realities, and geopolitical balancing. While tariff cuts may offer near-term confidence to markets, the harder elements of the agreement remain contested. The eventual shape of the deal will depend less on headline announcements and more on whether negotiators can reconcile ambition with feasibility without triggering political backlash on either side.

Source: CNBC

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Cryptocurrency

A Sharp Break Signals Deepening Market Stress

Bitcoin fell below the $72,000 threshold on Thursday, reaching levels last seen around 15 months ago and extending a prolonged decline that has erased more than 42% of its value since peaking in October last year. The world’s largest cryptocurrency briefly flirted with the $70,000 level before stabilizing near $71,000 in London trading. This move places Bitcoin close to its weakest levels since the period following President Donald Trump’s election victory in November 2024, reinforcing the sense that a longer-term downtrend remains intact.

Market participants increasingly describe the current environment as a loss of conviction rather than a purely technical correction. Shiliang Tang of Monarq Asset Management characterized the situation as a “crisis of faith,” capturing the shift from speculative enthusiasm toward widespread doubt about near-term recovery prospects.

From Crypto-Specific Liquidations To Cross-Asset Pressure

Earlier phases of Bitcoin’s decline were largely driven by crypto-specific factors such as forced liquidations and leverage unwinding. The latest leg lower, however, has coincided with synchronized selling across global markets. U.S. equities came under renewed pressure on Wednesday, with the Nasdaq 100 falling more than 2% and losses spreading through software, semiconductor, and other interest rate-sensitive sectors. Weakness carried into Thursday across Asian and European markets.

This shift suggests a correlation between Bitcoin’s latest losses and broader risk aversion rather than a single crypto-centric trigger. Unlike equities, which only recently turned sharply lower, digital assets had already been sliding for months, leaving them vulnerable when global sentiment deteriorated further.

Fear Dominates Crypto Sentiment

Sentiment indicators point to extreme pessimism across the digital asset space. Andrew Tu of Efficient Frontier noted that the market has entered a phase of “extreme fear” after a rout over the past week. He warned that failure to hold above $72,000 could open the door to a deeper decline toward $68,000, or even a return to the post-rally lows seen in 2024.

These expectations reflect not just technical levels but also waning belief in crypto’s resilience. Bitcoin is down about 17% so far this year, while the broader cryptocurrency market has shed more than $460 billion in value in just one week, underscoring the scale of capital withdrawal underway.

ETF Flows Highlight Investor Uncertainty

Investor behavior in U.S.-listed Bitcoin exchange-traded funds has been volatile, reinforcing the picture of fragile confidence. After attracting roughly $562 million in net inflows on Monday, the group saw $272 million of outflows on Tuesday, according to Bloomberg data. Such rapid reversals point to short-term positioning rather than conviction-driven allocations, amplifying price swings during periods of stress.

The choppy ETF flows suggest that institutional participation has not yet provided a stabilizing anchor. Instead, these vehicles appear to be transmitting broader market anxiety directly into Bitcoin prices, increasing sensitivity to shifts in global risk appetite.

Safe Haven Narrative Under Pressure

As Bitcoin continues to fall alongside equities, skepticism is growing about its ability to act as a hedge during periods of market turmoil. The latest sell-off has challenged the narrative that digital assets can decouple from traditional risk assets when volatility rises. Instead, Bitcoin’s performance increasingly resembles that of a high-beta asset, moving in tandem with broader financial conditions.

For now, Bitcoin’s trajectory appears tied less to incremental crypto developments and more to the direction of global risk sentiment. Unless confidence stabilizes across equities and credit markets, the pressure on digital assets is likely to persist. The current environment suggests that restoring trust, rather than identifying a single bullish catalyst, will be critical for any durable recovery in Bitcoin prices.

Source: Bloomberg

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Owen Li

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The Malaysian ringgit, Asia's top-performing currency last year, has further potential to strengthen as the nation's economy continues to show robust growth, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

In a recent interview, the finance minister suggested that official growth forecasts may soon be revised upward. He argued that the ringgit was undervalued in the past year and the market is now adjusting to its fundamental strength. This momentum is supported by January's capital inflows into Malaysia's equity and bond markets, a trend he expects to continue.

"I think the ringgit still has potential because growth is still intact in this country and it's still growing well," Amir Hamzah stated. The currency pared its losses during his remarks, trading at 3.9437 against the dollar in Kuala Lumpur.

A Resilient Economy Powers the Currency

Malaysia's economy has demonstrated impressive resilience, weathering challenges like US tariffs that have impacted global trade. This strength has allowed the central bank to hold its benchmark interest rate steady since July.

Economic performance is outpacing much of Southeast Asia, driven by several key factors:

• Strong Domestic Demand: Local consumption remains a solid foundation for growth.

• Strategic Investments: The country is attracting capital into high-value sectors like electronics, data centers, and energy transition projects.

In 2025, Malaysia's economy expanded by 4.9%, exceeding the government's own forecast of 4% to 4.8%. While the official projection for this year is a more moderate 4% to 4.5%, Amir Hamzah expressed optimism that Bank Negara Malaysia could raise this estimate in its upcoming review. He also noted a lack of catalysts that would cause inflation to rise this year.

Central Bank Holds a Steady Course

Bank Negara Malaysia (BNM) is focused on maintaining stability to support the economy. BNM Governor Datuk Seri Abdul Rasheed Ghaffour recently stated that while uncertainty remains high, he is "cautiously optimistic" about 2026.

"What's important for us is to ensure that we provide a conducive environment from monetary stability and financial stability for us to be able to achieve sustainable growth," he explained.

This sentiment is shared by the private sector. Datuk Seri Khairussaleh Ramli, CEO of Malayan Banking Bhd (Maybank), the country's largest bank, anticipates that BNM will likely keep interest rates unchanged throughout the year as economic growth moderates.

Fiscal Discipline and Diversification

The ringgit’s rally—up 3% this year after a nearly 10% gain in 2025—is not just a story about a weaker dollar. It is rooted in structural improvements, rising investment, and a clear government agenda for fiscal consolidation.

Prime Minister Datuk Seri Anwar Ibrahim's administration aims to narrow the budget deficit to 3.5% of GDP this year, down from a target of 3.8% in 2025. Amir Hamzah confirmed the 2025 target was "within reach," with final figures expected by the end of February. This commitment to fiscal health is designed to boost investor confidence.

A core part of this strategy is a deliberate shift away from reliance on petroleum-related revenue. The government is focused on diversifying its economic base, improving tax collection, and reducing subsidy spending.

"The key for Malaysia was the diversification," said Amir Hamzah. "The more we push for economic diversification, the more we improve our fiscal space and tax collections, the resilience of the fiscal space of the government is much better."

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Tether USDt Hits Record $187B Market Cap In Q4 Despite Crypto Downturn

USDt market cap. Source: Tether

USDt onchain activity hits records

Tether buys more US Treasuries. Source: Tether

Tether launches GENIUS Act–compliant stablecoin

Source: COINTELEGRAPH

Bitcoin Slumps as Treasury Signals No Backstop, Deepening the Crypto Confidence Shock

Policy Clarity Removes A Key Assumption

From Speculation To Systemic Anxiety

Broader Markets Add Downside Pressure

Flows And Positioning Show Capitulation, Not Accumulation

Technical Levels Offer Little Comfort For Now

Source: Yahoo Finance

How Fast Is The Asian Population Ageing?

You will find more infographics at Statista

Source: Zero Hedge

Canada Scraps 2035 Gas Car Ban for EV Incentives

A New Strategy: Subsidies and Tighter Standards

Responding to Auto Industry Pressure

Protecting Canadian Auto Jobs from US Tariffs

A Mandate in Disguise?

U.S.–India Trade Deal Faces Reality Check as Tariff Cuts Clash With Political and Energy Constraints

A Breakthrough Announcement With Unsettled Details

Tariffs And The Risk Of Reversal

Agriculture Becomes The First Fault Line

Energy Security And Russian Oil Dependence

The Ambition To Buy $500 Billion Of U.S. Goods

Negotiations Still In Motion

Source: CNBC

Bitcoin Slides Below $72,000 as Confidence Erodes Across Risk Assets

A Sharp Break Signals Deepening Market Stress

From Crypto-Specific Liquidations To Cross-Asset Pressure

Fear Dominates Crypto Sentiment

ETF Flows Highlight Investor Uncertainty

Safe Haven Narrative Under Pressure

Source: Bloomberg

Why Malaysia's Ringgit Rally Could Have Legs

A Resilient Economy Powers the Currency

Central Bank Holds a Steady Course

Fiscal Discipline and Diversification

Risk Disclosure