USDT Dominance & “outside game”
All content below is a personal view, not investment advice.
How much you believe and how much you use is your choice.
One of the things the market often overlooks is USDT Dominance – the ratio of capital held in USDT compared to the total crypto capital. During this period, USDT.D is reflecting a clear reality: large funds are not willing to leave stablecoins to accept long-term risks.
USDT.D has not broken down, continuously holding above the support zone and each decline has bounced back very quickly. If this is a real uptrend, this index must drop sharply, indicating that money is leaving stablecoins to rush into risky assets. Instead, money is standing outside, only rotating short-term to create a sense of “healthy market”, but has not yet trusted a sustainable upward trend.
In this context, there is a high possibility of a large FOMO lasting about a few days within the next month – that is the final phase for distribution, not the starting point for a super cycle. My personal view is: the more people look at the same price area, the easier that area is to break or skew to maximize liquidity before a true reversal.
#usd.d