A market dynamic that characterized the steep bitcoin and crypto market selloff early this year is making a comeback: Traders are again preferring dollars over the largest cryptocurrency.
This is evident from trends in their respective dominance rates, a measure of a cryptocurrency’s share in the total market value of the digital asset market.
BTC’s dominance rate has pulled back to 60% from 61.20% since May 5. At the same time, the dominance rate for Tether’s USDT, the largest dollar-pegged stablecoin, increased from 7% to 7.5% while Circle Internet’s (CRCL) USDC, the second-largest, rose from 2.8% to 3%.
In other words, money seems to be rotating back into tokenized versions of the U.S. currency. That makes sense because
