Core Insights - The demand for Tether's USDT stablecoin has significantly slowed down in January 2026, raising concerns about its impact on the broader crypto market and potential Bitcoin price rallies [1] Group 1: Tether's Circulating Supply and Market Impact - Tether's circulating supply is experiencing a sharp slowdown, indicating slower growth in stablecoin liquidity, which historically influences overall crypto market momentum [2] - The 60-day average of USDT market cap changes shows a decline from $15 billion to $3.3 billion since late November 2025, suggesting a significant reduction in Tether's expansion [3] - The slowdown in USDT issuance could be temporary, with market experts projecting stablecoin payments to reach $56 trillion by 2030, indicating potential future growth [3] Group 2: Bitcoin Correlation and Market Dynamics - Rapid increases in USDT market capitalization have historically coincided with Bitcoin rallies, while slowdowns in liquidity growth often lead to Bitcoin consolidation or downtrends [4] - The 60-day market cap change metric for USDT has not yet turned negative, but there is a notable decline in USDT market capitalization on Ethereum [4] Group 3: Market Sentiment and Capital Flows - USDT has been trading consistently below $1, indicating capital outflows as stablecoin holders opt to exit rather than invest in new positions [5] - Tether Treasury's recent burn of 3 billion USDT, the largest in three years, signals caution among large holders amid rising macroeconomic and geopolitical uncertainties [5][6] - If outflows accelerate, the stablecoin market's total capitalization near $308 billion could face a corrective phase, increasing the risk of a broader downturn in the crypto market [6] Group 4: Unique Market Participants - Iran's central bank has emerged as an unusual buyer of USDT, purchasing $507 million to bypass US sanctions and stabilize the rial, highlighting unique dynamics in the stablecoin market [7]

Core Insights - Stewards Inc. has announced a $10 million strategic partnership with Dolomite to enhance its Digital Asset Treasury initiative and diversify its financial platform [1][3][5] Partnership Details - The partnership involves a token-for-equity transaction structured as a private PIPE, allowing the purchase of up to 2,450,981 shares at $4.08 per share, divided into 10 tranches of $1 million each [2][3] - Tokens will be released based on achieving specific $DOLO 30-day VWAP milestones ranging from $0.10 to $1.00, with a 12-month lockup period for shares and tokens [2][3] Digital Asset Treasury Initiative - The collaboration supports the launch of Stewards' Digital Asset Treasury (DAT) initiative, leveraging Dolomite's blockchain infrastructure for improved funding, settlement, and treasury management [3][5] - The DAT framework aims to enhance liquidity velocity and capital deployment efficiency, allowing the management of U.S. dollar-backed stablecoins supported by short-term U.S. Treasuries and cash equivalents [5][6] Tokenization and Compliance - The partnership enables Stewards to explore tokenized representations of real-world assets, enhancing collateral efficiency and balance-sheet flexibility while adhering to financial regulations [6][7] - The integration of decentralized infrastructure with established financial systems is expected to deliver real-world value for institutional participants [7] Strategic Vision - The partnership is viewed as a foundational element of Stewards' long-term digital finance strategy, aiming to unify liquidity management and capital efficiency across its platform [7]

Macroeconomic Factors - Expectation of 3 or more Federal Reserve rate cuts [2] - Federal Reserve is anticipated to end its Quantitative Tightening (QT) program [2] - Treasury is expected to implement Quantitative Easing (QE) through bond buying [2] Crypto Market Liquidity - Stablecoin liquidity is projected to exceed $300 billion [2] - Money-market funds hold $7.4 trillion [2] Regulatory and Product Approvals - Anticipation of Clarity Act approval [2] - Expectation of over 90 crypto Exchange Traded Products (ETPs) approvals [2] - Potential approval of ETH ETF staking [2]