⭐ $BTC Dominance Collapse: Capital Flow Shifts from Bitcoin to Stablecoin & Fiat – New Bearish Wave Warning?
- Bitcoin Dominance has just lost an important support zone that has been maintained for nearly two years, but what’s notable is not just the capital outflow from Bitcoin.
- Current data shows that capital is not flowing strongly into altcoins as many expected, but is shifting to stablecoins and even back to fiat.
- When BTC Dominance decreases but total market capitalization does not increase correspondingly, it is often a signal that capital is being withdrawn from the crypto ecosystem. The increase in stablecoin share in this context reflects a defensive sentiment, where investors prioritize liquidity over taking risks.
- This may be a warning that the market is not ready for a true “Altseason.” Instead, this could be a distribution phase, where smart money is temporarily standing aside to observe.
- If the trend of capital withdrawal continues, selling pressure may increase broadly, not just for Bitcoin but also for altcoins.
- As liquidity decreases, volatility will become unpredictable and downward moves may occur faster than expected.
- The flow of capital back to stablecoins and fiat often appears before periods of instability or when market confidence weakens.
- This is not a signal to panic, but a sign to be more cautious in capital management and trading strategies.
- In this context, the important thing is not to seek sudden profits, but to preserve assets and wait for clearer confirmations from market structure.
