Tether USDT. Photo by BeInCrypto <\/p>\n
Tether Dominance (USDT.D) is one of the metrics closely correlated with Bitcoin\u2019s price and overall market capitalization. Yet it is often overlooked in many market analyses. Now, this data has confirmed warning signals worth paying attention to.<\/strong><\/p>\n USDT.D represents Tether\u2019s share of the total crypto market capitalization. Changes in USDT.D can help measure how actively traders spend USDT, providing a basis for predicting possible scenarios.<\/p>\n Tether<\/a> (USDT) remains the leading stablecoin in terms of both market share and liquidity. A decline in USDT.D usually means traders spend more USDT to buy Bitcoin and altcoins, driving higher prices.<\/p>\n On the other hand, a rise in USDT.D indicates that traders are selling assets and moving back into USDT. This reflects cautious sentiment toward volatility and often signals potential downside risk<\/a>.<\/p>\n TradingView data shows that the inverse correlation between USDT.D and total crypto market capitalization has been observed repeatedly over the years.<\/p>\n During the final week of September, USDT.D climbed to 4.69%, its highest level in two months. Analysts see this breakout<\/a> as a move that could push it even higher, raising concerns about a prolonged bearish outlook in the days ahead.<\/p>\n Market analyst Jason Pizzino remains hopeful that USDT.D will soon correct. However, he does not rule out a breakout above 5% as a troubling confirmation.<\/p>\n \u201cHere\u2019s the breakout no crypto bull wants to see. The good news is that USDT dominance is now testing the macro 50% level. However, above ~5% and the trend could be changing for the bulls. Hopefully, it\u2019s a test and rejection. Otherwise, be prepared,\u201d Pizzino commented<\/a>.<\/p>\n<\/blockquote>\n At this stage, most negative analyses based on USDT.D rely heavily on technical signals, where trendlines and resistance levels play a central role. This limits reliability when broader fundamental factors are added to the picture.<\/p>\n Those fundamental factors<\/a> include record-high USDT reserves on exchanges, new peaks in USDT netflows, and rising demand from traders reflected in Tether\u2019s recent surge in USDT minting. This setup acts like gunpowder ready to be deployed.<\/p>\n \u201cNow, given the perfect negative correlation between USDT.D and $TOTAL, this would imply \u2018one more sweep of the lows\u2019… But TA isn\u2019t always perfect. It doesn\u2019t make much sense to unload bags here just to maybe buy them back slightly lower. We are likely close to finalizing our high time-frame swing low for a bullish Q4,\u201d Max, founder of BecauseBitcoin, said<\/a>.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"Tether USDT. Photo by BeInCrypto Tether Dominance (USDT.D) is one of the metrics closely correlated with Bitcoin\u2019s price…\n","protected":false},"author":3,"featured_media":256144,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,134897,10288,135,80119,67,132,68],"class_list":{"0":"post-256143","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-market-analyses","10":"tag-market-capitalization","11":"tag-markets","12":"tag-tether","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115270739787180272","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/256143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=256143"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/256143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/256144"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=256143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=256143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=256143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} Total Market Capitalization And USDT.D. Source: TradingView<\/a> <\/p>\n
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