A generally followed crypto analyst says that a stablecoin -metetric will probably indicate when Bitcoin (BTC) and other digital assets will introduce a downrend.
In a new video -update, crypto -strategist Jason Pizzzino tells His 351,000 YouTube subscribers that the price of Bitcoin and other crypto -activa can be negatively influenced if the USDT Dominance (USDT.D) graph does not drop below the level of support of 3.7%.
A Bullish USDT -Dominance, the ratio of the market capitalization of USDT compared to the rest of the crypto assets, is generally considered a Bitcoin and other cryptocurrencies, because it indicates that traders unload their crypto companies in favor of the Stablecoin.
“So in the coming months, leading to this early quarter, perhaps, USDT -Dominance, if it still doesn’t break through the zone of 3.7% to 4.5%, probably a good sign to get a little careful on your transactions and not to get a bit crazy …
The reason for this is that this is where the money is in crypto. This is like our global money supply for Bitcoin, and if it is not projected, if it is not released, where does the money come from? Some say maybe, well, it’s just ETF (listed funds). And that goes directly from cold, hard USD in ETFs, perhaps in Bitcoin ETFs.
This has had such a strong correlation between the two that it seems unwise to forget it. And yes, I can already hear the argument say, well, just because it is correlated does not mean that it must continue like this. Certainly, but while it still works, probably a good idea to keep it there. “
At the time of writing, USDT.D floats at 4.53%.
He also looks at the combined dominance of the Tether-published Stablecoin USDT Plus the Dominance of USDC, published by Circle, and says that the graph must dive under 5% to activate explosive rallies for BTC, Ethereum (ETH) and other digital assets.
“Now the other I view, USDT -Dominance plus USDC -Dominance, so the two largest stablecoins …
You are back here on the double bottom of 5%. So this graph should also be able to break down the level of 5% if we will see some pretty significant profit for Bitcoin, ETH and so on. “
https://www.youtube.com/watch?v=7WC5ZN7WLYM
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