USDT Dominance breakdown

USDT.D The rising channel that it has been following since March 2024 has turned into a downtrend and is being tested again.

USDT (#Tether) dominance refers to the ratio of Tether's total market value to other crypto assets in the crypto market. When USDT dominance drops, the following results are usually observed:

1. Rise in Bitcoin and Altcoins: Tether is often used as a safe haven in the market as a stablecoin. When USDT dominance falls, it can be understood that investors turn to riskier assets (#Bitcoin and altcoins). This could cause a rise in #BTC and #altcoins.

2. Increasing Confidence in the Market: While USDT dominance is decreasing, it can be considered that risk appetite is increasing among investors. That is, investors prefer to invest in more volatile cryptocurrencies rather than stablecoins, which may indicate an increase in confidence in the market overall.

3. Dispersion of Liquidity: The decrease in USDT dominance means that market liquidity is distributed to assets other than USDT. This could result in a more diversified market structure, with market volume spread across other coins.

4. Beginning of Market Cycles: Declines in #USDT dominance can be interpreted as the beginning of a bull market cycle as investors turn to assets with the potential to appreciate rather than stablecoins.

USDT dominance decline may indicate that investors' perception of risk in the #crypto market has increased and they are seeking higher returns, but market conditions and other economic factors should also be taken into account. 🤝