Tether Dominance Signals the Market May Not Have Found a Bottom Yet
High Tether Dominance (USDT.D) reaching a two-year high suggests investors are moving to stablecoins, indicating the crypto market may not have bottomed out.Summary
The cryptocurrency market is facing its fifth consecutive month of decline, with total market capitalization around $2.5 trillion. An analysis of Tether Dominance (USDT.D), which measures USDT's share of the total market, suggests a bottom has not yet been reached. USDT.D hit a two-year high of 7.4% on February 2, indicating investors are selling crypto assets into USDT and are hesitant to reallocate funds. This movement mirrors the lead-up to the prolonged bear market of 2022, especially as USDT.D broke above a 6.5% resistance trendline while total market capitalization broke key support. Analysts like Crypto Tony believe Bitcoin has not bottomed, while others suggest a retest of the 6.5% level could signal shorting opportunities, with potential upside for USDT.D toward 9.5%, a level that coincided with the 2022 bottom. Further confirming bearish sentiment, stablecoin liquidity is declining, with 30-day average inflows to exchanges dropping sharply since November, and significant outflows occurring in early 2026, suggesting investors are withdrawing stablecoins entirely, signaling a persistent lack of liquidity.
(Source：BeInCrypto)