Stablecoin Dominance Effect on Crypto

The markets follow or are under the influence of some parameters that let investors have some vision about the short or middle term price actions. While the macroeconomic activities are the best sources to see the long term decisions, correct decisions in the short time frame enable investors to make more gains until the end of the period that investors target to turn back to cash from top levels.

The crypto market has proven that there is a huge correlation between the stock market and our growing market. With the launch of spot Bitcoin ETFs, the stock market investors have taken their first steps to the crypto ecosystem. With this move, Bitcoin opened a door for other major altcoins to be adopted by the investors, too.

So far we have seen that impact on the all time high and the massive volume in the market. Yet, the long waited altcoin rally never happened before a correction time shows up. Thus, lots of altcoin investors started to watch the melt of their risky investments during the turbulence in the crypto ecosystem.

What is the reason behind this fear in the market?

Kucoin Weapon & USDT Spike

There are two parameters that I want to talk about.

First of all, the market needed a reason to be fearful as the altcoins started to test important resistance levels earlier. To diminish the hype, we had strong signs in the ecosystem.

1 - Keeping ETH below $4000, which is the gate that opens up altseason

2 - Creating a new source of fear to diminish the trend in the market

When the reasons got together and the liquidity and hype lost power, investors felt the upcoming avalanche of sell orders. As bulls became fearful, bears did not hesitate to trigger a blood bath!

This is where we encountered some strength in the weekly chart of USDT market domination. The support from the level of 4% may reach up to around 5% which is enough to shake the market further.

The problem did not occur all of a sudden. Actually, the markets are bothered with the rise of Brent Oil prices and the DXY index. The speculations over fewer than 3 expected interest rate cuts eventually impact the market negatively.

The DXY index had been on the rise since the beginning of March. As expected, the stronger dollar is a great indicator of a correction in the markets when the FX whales start to turn everywhere red.

Kucoin FUD was made up to serve for the purpose. As a result of that, we have a downtrend that is validated in crypto.

What do you think about the changes in the dominance chart of USDT coin?

Share your thoughts below 👇

Hive On ✌️

Posted Using InLeo Alpha