The Dominance of USDT Decreases as Fear Turns into Greed

USDT Dominance (USDT.D) shows how much Tether (USDT) accounts for in the crypto market capitalization. When USDT.D falls, it usually means that people are converting their USDT into assets like Bitcoin and altcoins, indicating increasing confidence in the market. Recently, we have seen a USDT Dominance Drop, which often signals the potential for a strong bullish move. Simply put, the lower dominance of stablecoins means more buying activity of other cryptocurrencies. This shift is something both retail and institutional investors are closely monitoring, especially as the market warms up after a long period of cooling off. Tether reaches a record high, what does this mean for Bitcoin In April 2025, the market capitalization of Tether reached a new record: 146 billion USD. This is an increase of 8.5 billion USD since the beginning of the year, and 1.6 billion USD was added in just April. When Tether prints more USDT, it usually reflects the increasing liquidity in the market. But the issue is not just about printing; what really matters is how it is used. A fall in USDT during the printing period signals that people are not just holding USDT, they are spending it, possibly to buy Bitcoin or altcoin. This is a potential bullish signal that cannot be overlooked.

The symmetry between BTC and USDT.D indicates a bullish pattern. Max, the founder of BecauseBitcoin, has noticed an interesting thing: Bitcoin and USDT.D often move in opposite directions. He has emphasized a strong symmetry where every time USDT Dominance falls, Bitcoin tends to spike. Both charts have recently broken through significant support and resistance levels. If history repeats itself, we may soon see a strong bullish trend for BTC. Max believes that the current pattern could be the beginning of another major move, stating that this could be "the collapse of USDT.D and the push higher for BTC". It is not just technical, but also a sentiment signal. The dominance of Stablecoin reacts to resistance. Besides USDT, another important signal is the combined index of USDT.D and USDC.D, which essentially represents the dominance of stablecoins over the two largest companies. According to investor Cryptosahintas, this combined index has reached a resistance level of 8%. That resistance level often implies that funds may soon shift from stablecoins to other assets. If that happens, altcoins could see a strong comeback. Some predict that this combined index could fall to 3.5%, extending into next year. That would mark a clear shift in capital flow, especially if USDT Dominance decreases further. Market sentiment is changing: Fear is turning into greed Investor behavior is beginning to change. The Fear and Greed Index, often used to measure sentiment in the crypto market, has shifted from fear to greed. This is quite a significant change. It indicates that people are starting to feel confident again. Altcoin prices have fallen sharply in recent months and now many investors are buying back, hoping for a bullish trend. This new energy coincides with the recent fall in USDT dominance, creating the impression that we may be at the beginning of a new cycle. The sentiment is changing and the charts are starting to reflect that. Total market capitalization recovered by 6%—Is this just the beginning? The total market capitalization of the crypto market recently increased by 6%, from 2.68 trillion USD to 2.84 trillion USD and is currently at 2.92 trillion USD. Although this recovery seems small, it is a strong signal considering the recent volatility. The increase in market capitalization indicates that more money is flowing into cryptocurrency in general. However, experts like those at 10x Research still recommend caution. Although stablecoin minting has increased, it has not yet reached past highs. Therefore, while the USDT Dominance Drop may suggest a comeback, it is essential to maintain balance and closely monitor market indicators, especially the dominance of stablecoins and how they develop.