The USDT market share has reached its highest levels, and panic sentiments have risen significantly.
Tether's dominance in the market has risen to its highest level since April, with a total market capitalization of $1840 billion. The extreme fear sentiment in the cryptocurrency market directly reflects that, amid a 11% decline in BTC this month, a large number of investors are pulling their money from volatile assets and converting it to USDT.
The rise in USDT dominance means that the market has accumulated a huge amount of dry powder waiting to re-enter to buy the dip. Although this massive influx of funds has increased selling pressure on risky assets in the short term, it is considered potential demand in the long term to drive the next round of the bull market recovery.
The main task at the current stage is to preserve capital value, and it is advised to allocate most assets to mature stablecoins like USDT or USDC. Indicators like the MACD should be monitored closely to see if they begin to shift into a bearish market structure, and at the same time, attention should be paid to defending BTC at the critical cost price of $94000. Selling should be avoided in the worst moments in terms of market sentiment, and it is recommended to open buy positions near key support levels only using very low leverage.$BTC
