The post USDT Dominance Commands Crypto Market, Impacting Bitcoin’s Surge and Altcoin Growth appeared on BitcoinEthereumNews.com.

The stablecoin market is currently led by Tether (USDT), which holds a dominant 70% market share. Bitcoin recently tested the critical $60,000 support level, revealing key market dynamics. The combined dominance of USDT and Bitcoin indicates significant influence over the cryptocurrency market’s movements. Discover the latest insights into the cryptocurrency market as Tether (USDT) leads stablecoins and Bitcoin tests crucial support levels. Tether’s (USDT) Dominance in the Stablecoin Market At the forefront of the stablecoin market, Tether (USDT) commands an impressive 70% share, with its closest competitor, USDC, holding a 20.8% share. The total market capitalization of stablecoins stands at $168 billion, representing 8.2% of the entire cryptocurrency market. This dominance of USDT is a critical indicator of market sentiment and stability. Bitcoin’s Market Influence and Recent Trends Bitcoin (BTC), the leading cryptocurrency, has continually influenced the broader digital asset landscape. On the 8th of August, Bitcoin tested the $60,000 support level but experienced a consolidation phase for ten days. Recently, a bullish push lifted Bitcoin out of this consolidation, with its price currently at $60,941. The relationship between Bitcoin and stablecoins, particularly USDT, suggests that changes in stablecoin dominance can impact Bitcoin’s price movements, as highlighted by data from platforms like Alphractal. Correlation Between Bitcoin and Stablecoins Historically, as Bitcoin tests key resistance levels, there is often a corresponding increase in stablecoin dominance. Investors may convert their holdings to stablecoins to mitigate Bitcoin’s volatility. For instance, on the one-month chart, the total net flow of USDT on exchanges turned negative, indicating higher withdrawals than deposits. As of the 9th of August, approximately 41 million USDT had flowed out of exchanges, up from 35 million the previous day. This trend could potentially hinder Bitcoin’s upward momentum, particularly if it struggles to breach the $62,000 resistance level. The Impact on Altcoins…

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Filed under: News - @ August 21, 2024 6:19 am