- USDT dominance is dropping, down 28% since October 2023.
- A drop in dominance might be a signal for an upcoming altcoin rally.
- Money might be flowing into the altcoin sector from the stablecoin.
The dominance of Tether (USDT), the largest stablecoin by market capitalization, has dropped significantly over the past year, possibly indicating an impending altcoin rally. This decline coincides with Bitcoin’s struggle to break through the $69,000 resistance level, leading investors to seek alternative opportunities in the crypto market.
TradingView data reveals that USDT dominance fell 0.53% in the past 24 hours and 0.62% in the last seven days. Over the past month, it dropped 4%, though it surged 27% in the last six months.
However, USDT dominance plummeted 28% over the past year, while the year-to-date value is only up around 0.8%. This suggests that investors may have recently taken profits and are now waiting for an opportunity to re-enter the market.
Altcoin Rally Expected as USDT Dominance Falls
Interestingly, a downtrend in USDT dominance often precedes an altcoin rally. This typically indicates that money is flowing out of the stablecoin and into the altcoin sector, potentially leading to a sudden jump in the price of digital currencies as investors shift their focus to Bitcoin and other altcoins.
October is historically a bullish month for the crypto sector. Bitcoin and the broader market often see significant gains, making Q4 generally more optimistic for market participants.
Read also: Satoshi Nakamoto’s Bitcoin Remains Untouched, Confirms CryptoQuant CEO
With the Fed potentially cutting down interest rates and institutional interest growing, demonstrated by companies like MicroStrategy and Metaplanet, there is a strong possibility that Bitcoin will surge in the near future. The declining dominance of USDT also points towards this possibility.
According to CoinMarketCap, the price of BTC dropped 2.4% in the past 24 hours to $60,830. Leading altcoins Ether (ETH), Cardano (ADA), Solana (SOL), and XRP also experienced declines of 1.96%, 1.51%, 2.81%, and 1%, respectively.
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Source: https://coinedition.com/falling-usdt-dominance-hints-at-potential-altcoin-market-rebound/