• The USDT has maintained its peg at $1, with increased trading volume during the early trading hours.
• Stablecoins such as USDT and USDC are under bullish influence, leading to a rise in their dominance.
• The rising dominance of stablecoins indicates that the crypto space is undergoing consolidation, which may cause Bitcoin price to drop below $22,000 and altcoins to drop by 8-10%.
USDT Dominance Rising High
The USDT has been able to maintain its peg at $1 despite pressure from the crypto market. This is due to an increase in trading volume during the early trading hours. Stablecoins such as USDT and USDC have gained bullish influence as most cryptos consolidate, resulting in a surge of their respective dominance.
Bearish Outlook on Crypto Space
The USDT dominance had been declining since the beginning of 2023 but began forming higher highs and lows after rebounding from a crucial support level. This means that more traders are shifting away from other cryptos towards stablecoins – causing half of the crypto volume to be dominated by stablecoins. This bearish outlook could lead Bitcoin’s price dropping back below $22,000 and altcoin prices dropping by 8-10%.
Stablecoin Volume Spikes
The spike in stablecoin volumes suggests that market participants are slowly ditching other cryptos for stablecoins – which could result in an even greater rise in their respective dominance soon. As a result, this could cause Bitcoin’s price to drop back lower than it was previously and altcoin prices to dip significantly too.
USD Dominance Rebound
The USDT dominance rose after bouncing off its crucial support level, leading it on its way towards retesting its resistance level once again. If this happens, then it is expected that popular tokens will remain under significant bearish pressure while also increasing their respective dominant market share even further.
In conclusion, the rising dominance of stablecoins indicates that consolidation will continue for some time yet – likely resulting in Bitcoin’s price falling back below $22,000 and altcoin prices dipping by 8-10%. Furthermore, if current trends persist then the overall market share held by these coins will only increase further over time.