Many won't like this, but USDT dominance is suggesting the crypto market could have further downside ahead.
The last time USDT dominance bottomed around this same region in early 2023, it went on to rally from roughly 6.3% to above 8%, remaining elevated for several months.
Fast forward to today, and we're seeing another reaction from the 6.2–6.5% support zone, with weekly Stoch RSI beginning to turn higher from oversold conditions.
The initial bounce has been relatively modest compared to previous recoveries.
If history is any indication, there could still be room for further upside in stablecoin dominance, which would generally be a headwind for $BTC and the broader crypto market.
One of several reasons we're remaining cautious on crypto for now.
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