What USDT dominance reveals about the health of the crypto market
- Assessing the relationship between USDT dominance and crypto prices.
- USDT flows reveal an almost evenly matched outcome between buyers and sellers.
USDT dominance can reveal a lot about the mood of the market. This is largely because USDT is the largest stablecoin, thus its activity and on-chain flows may reflect on the state of liquidity in the market.
USDT dominance should technically have an inverse relationship with Bitcoin [BTC] and altcoins. In other words, dominant should be higher when cryptocurrencies experience outflows.
For example, while September was mostly bullish for cryptocurrencies, USDT.D experienced a sizable retracement.
Patterns in USDT dominance may also give a rough idea of how the market will behave. USDT.D…
