[DigitalToday reporter Chi-gyu Hwang (황치규)] A golden cross, a signal of a shift to a bullish trend, has appeared on the dominance chart for USDT, the dollar stablecoin issued by Tether. An analysis says this is a negative signal for bitcoin.
According to a recent Coindesk report, USDT dominance refers to the share of USDT in the total cryptocurrency market capitalisation. A golden cross, when the 50-week moving average breaks above the 200-week moving average, is a technical signal that USDT’s share could increase over the coming weeks. Coindesk said it is an unfavourable sign for bitcoin because it means market participants are moving funds into dollar-pegged tokens instead of volatile assets.
USDT ranks third by cryptocurrency market capitalisation after bitcoin and Ethereum, with a market value of $186.84 billion. USDT dominance tends to rise when bitcoin’s price falls. Coindesk said this is a typical risk-off move in which funds shift from speculative assets to dollar-equivalent assets.
Chi-gyu Hwang
delight@d-today.co.kr