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Bitcoin prices decline amid stablecoin contraction despite rising bank reserves

Nov 07, 2026 20:07 Written by Newisty Editorial Team bitcoin stablecoins bank reserves cryptocurrency market analysis

Bitcoin sees price drop
Bitcoin's price fell on November 5 after a contraction in the supply of dollar-pegged stablecoins was reported. This decline occurred even as bank reserve balances rose significantly during the same period.

Key numbers

Bank reserve balances increased by $67.5 billion between October 28 and November 4.
The circulating supply of dollar-pegged stablecoins decreased by 1.91%, totaling a drop of over $5.7 billion.
Bitcoin's price closed at $75,969.06 on November 5, down 5.54% from the previous day.

Stablecoin decline details

During the observed week, Tether's (USDT) circulating units fell by approximately 3.65 billion, or 63.37% of the total contraction in stablecoins, while USD Coin (USDC) supply dropped by 383 million.

Bank reserves and stablecoins

The Federal Reserve's report on bank reserves noted a total of $2.96 trillion in reserve balances as of November 4. Despite the increase in reserves, which might suggest more liquidity, there is uncertainty regarding how this translates to Bitcoin demand.

Sources

CryptoSlate

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Newisty Editorial Team

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Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.