Bank reserve balances at the Federal Reserve rose $67.5 billion in a week, while tracked dollar-pegged stablecoin circulation fell 1.91%. Bitcoin dropped 5.54% on Nov. 5, and the link from bank balances to crypto buying remains unestablished.
Bank reserve balances rose $67.5 billion between Oct. 28 and Nov. 4, according to the Federal Reserve's Nov. 5 release, but more abundant dollar liquidity is not automatically bullish for Bitcoin. Over the same period, data provider DefiLlama tracked dollar-pegged stablecoin circulation falling by more than 5.7 billion units, or 1.91%.
Higher reserves would still need to translate into financing and purchases, so the token contraction adds a crypto-side observation to that test.
Bitcoin slides after the reserve reading
Coinbase's completed Nov. 5 daily BTC-USD candle closed at $75,969.06, down 5.54% from $80,428.31 on Nov. 4. That fall followed the dated reserve observation, which puts the price move outside the bank-balance comparison window.
Reserves rise as Treasury cash falls
The Fed's H.4.1 release puts Nov. 4 reserve balances at $2.96 trillion. Over the preceding week, the Treasury General Account, the government's account at the Fed, fell $79.4 billion to $936.2 billion.
Total assets rose $2.5 billion, while other balance-sheet changes offset part of the effect of the Treasury-account drawdown.
Tether accounts for most of the token decline
Tether's USDT series fell 3.65 billion units, accounting for 63.37% of that measured contraction. USD Coin (USDC) circulation declined 383 million units, contributing 6.64%. Other tracked dollar-pegged tokens together contracted a net 1.73 billion units.
Whether issuer redemptions, bridge-accounting adjustments, reclassification, or coverage revisions contributed remains unquantified. Neither supply series resolves the cause of the subsequent selloff, and delayed liquidity effects remain possible.
Source: CryptoSlate
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