Bitcoin and USDT Dominance at a Crucial Juncture-Here’s How It May Impact the AltSeason!

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The crypto space is heavily dependent on two of the token, the dominant crypto, Bitcoin, and the dominant stablecoin, USDT. BTC & USDT are the two major traded tokens in the market that share more than 80% of the daily traded volume. Hence, the rising or falling dominance of these two crypto assets could have a larger impact on the entire crypto space as well. 

Recently, the dominance of Bitcoin has spiked and marked multi-year highs at around 52%, which has injected all the liquidity into the token, propelling the price higher to close to $32,000. Unfortunately, it experienced a major dump and is currently trading below 48.76%. A drop in BTC dominance suggests a rise in the possibility of an alt season. 

But the altcoins are also on the verge of losing nearly 20% to 40% of their value as USDT is in the middle of a multi-month consolidation. 

USDT dominance is soaring, making an effort to rise within the purple zone. An upward movement to 8.20% will signal an exit from the cryptos to the stablecoin, and accordingly, altcoins could lose another 20% to 40%. Besides, if the dominance triggers a descending movement to 6.90%, then the altcoins may get a wider push, enabling them to undergo a minor upswing, which may even transform into an Altseason as well. On the other hand, BTC dominance is also at crucial levels, close to 49%. 

The dominance is plummeting, but it is making an effort for a significant rebound. This is a signal that capital from BTC has begun to flow into altcoins. There will be consolidation of this indicator below 49%. Further, if the dominance drops from 44% to 42%, this may trigger the much-awaited and long waited for altseason. Therefore, the next couple of days could be extremely important for the entire crypto space, which may set forth the trend for Bitcoin, USDT, and the other altcoins in the space.