One of the clearest warning signs for crypto investors is coming from stablecoins.

Stablecoin supply fell $14.2 billion over the 30 days through November 9, according to Glassnode. That is the sharpest contraction since June 2022, when the Terra collapse helped trigger a much deeper market crisis.

The decline raises a question for the broader crypto market: Who is left to buy if investors keep withdrawing their money?

Stablecoin Supply Shows Less Active Buyers

Stablecoins such as USDT and USDC serve as crypto’s cash reserves. Traders hold them before buying Bitcoin, Ethereum, or smaller cryptocurrencies.

When investors redeem stablecoins for dollars, those tokens leave circulation. This reduces the pool of dollar-linked liquidity available…