According to data shared by ETH Daily on X, Tether’s (USDT) dominance is testing a key resistance level, signaling a possible turning point for Bitcoin and altcoins. The move, observed earlier today, could determine whether the crypto market shifts toward risk or safety in the coming days.
USDT Dominance has been rising over the last 6 months, reflecting a 20% increase in October.
Investors are cashing out to hold USDT positions.
Will this trend continue, or is this the ceiling? https://t.co/zMhg3EpGtG pic.twitter.com/4cksfTAadR
— Ethereum Daily (@ETH_Daily) November 5, 2025
When USDT dominance rises, it typically indicates that traders are moving funds from volatile assets into stablecoins, reflecting caution in the market. If dominance continues climbing, it may add pressure on Bitcoin and altcoins. However, a rejection at this resistance could instead trigger renewed buying momentum across major cryptocurrencies.
Market participants are watching this resistance zone closely as a potential inflection point. A breakout could signal extended risk aversion, while a reversal might open the door for a relief rally. Analysts expect short-term direction to become clearer as Bitcoin reacts to this shift in stablecoin dominance.
Source: ETH Daily on X
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