According to analyst André Dragosch, traders should be cautious about relying on the inverse correlation between Bitcoin (BTC) price and USDT Dominance for market predictions. Dragosch presents an analysis suggesting this popular trading indicator might be a fallacy, similar to the often-cited but potentially spurious correlation between BTC and the US M2 Money Supply (source: @Andre_Dragosch). While charts show that a rising USDT Dominance has often preceded BTC price drops, Dragosch implies that drawing direct causal links is an oversimplification. He suggests that, like the M2 correlation, the relationship with USDT Dominance may be influenced by broader factors such as overall market liquidity and risk appetite, rather than being a straightforward predictive tool (source: @Andre_Dragosch). This serves as a warning to traders to avoid basing strategies solely on this single metric.

According to Cas Abbé, USDT dominance is forming lower highs even as the USDT market cap reaches a new record of $155 billion (source: Twitter/@cas_abbe, June 17, 2025). This signals that fresh liquidity is flowing into Bitcoin (BTC) and altcoins instead of remaining idle in stablecoins. More USDT are being minted, confirming increased capital entering crypto markets and supporting potential price action in BTC and alternative cryptocurrencies. Traders should monitor shifts in USDT supply and dominance as indicators for upcoming crypto market momentum.

According to Crypto Rover, USDT dominance is currently at a critical level, which often signals major shifts in the crypto market direction (source: @rovercrc, Twitter, June 15, 2025). Historically, declines in USDT dominance have preceded strong rallies in major cryptocurrencies such as BTC and ETH, as traders move stablecoin capital into risk assets. Traders are closely watching this metric for confirmation of a potential November rally, mirroring previous years when similar setups led to significant market gains.

According to IntoTheBlock, the total stablecoin market capitalization has exceeded $230 billion, signaling increased liquidity and trading activity in the crypto market. USDT is a significant driver of this growth, now accounting for 65.8% of the entire stablecoin sector. This dominance by USDT suggests heightened demand for dollar-pegged assets and may lead to tighter spreads and deeper liquidity on major exchanges. Traders should monitor stablecoin inflows and dominance ratios, as these metrics often precede shifts in Bitcoin and altcoin price trends (source: IntoTheBlock, May 6, 2025).

According to @rektcapital on Twitter, a bearish cross has formed on the USDT Dominance ($USDT.D) chart, which historically signals increased bullish momentum for altcoins. This technical indicator suggests that traders may see a rotation of capital from stablecoins into higher-risk altcoins, potentially driving up altcoin prices in the near term. Market participants are closely monitoring this development as it indicates a possible shift in market sentiment away from stablecoins and towards more speculative assets (source: @rektcapital on Twitter).

According to Cas Abbé on Twitter, USDT dominance has consistently peaked whenever the weekly RSI surpasses 60 since 2023, leading to significant liquidity inflows into Bitcoin and altcoins. Historical data from Q4 2023 and Q3 2024 show that these USDT dominance peaks align with the start of major market rallies, suggesting traders can monitor this indicator for potential bullish shifts in crypto assets (source: Cas Abbé, Twitter, May 3, 2025).

According to Trader Tardigrade, the USD Dominance Index ($USD.D) has reached a resistance level and is poised to decline, suggesting the onset of Altseason. Historical data indicates that Total 2 market cap has surged by 155% and 128% during previous declines in USDT dominance, which may hint at increased trading opportunities in altcoins.

According to Trader Tardigrade (@TATrader_Alan), Bitcoin may experience an upward trend as USDT dominance ($USDT.D) decreases below a resistance trendline. This movement is significant due to the inverse correlation between $BTC and $USDT.D, suggesting a potential bullish phase for Bitcoin as USDT's market dominance weakens.