USDT liquidity stress has intensified, reaching levels last observed during the 2022 crypto market bottom. This rare on-chain indicator suggests extreme market pressure, often signaling late-stage selling. Historically, such conditions have marked significant turning points, as traders shift from risk assets to stablecoins like USDT, draining market liquidity and increasing volatility. The current stress levels echo the 2022 capitulation phase, where selling pressure eventually subsided, leading to market stabilization. However, confirmation of selling exhaustion is crucial before considering it a market bottom. Traders typically look for signs like declining sell-off volumes and stronger price support. While elevated USDT liquidity stress may indicate peaking fear, the timing of market stabilization remains uncertain.