This chart highlights 5 key steps in crypto market sentiment shifts over time:
1️⃣ New Year 2018: The first major bottom occurred at the peak of the 2017 bull run. As the bear market started, USDT demand surged as investors fled to safety.
2️⃣ Start of 2021: Another significant drop in USDT dominance aligned with the explosive 2021 bull run, as liquidity flowed into riskier crypto assets.
3️⃣ 2023 Peak: A sharp increase in USDT dominance signaled heightened fear in the market during a period of uncertainty.
4️⃣ March 2024: The chart reached the 0.382 Fib retracement level, coinciding with a major BTC top. This marked the start of an 8-month consolidation period.
5️⃣ Now: The chart has broken down below the 0.382 Fib level and is heading toward the 0.5 Fib level, projecting a 227% decrease. This suggests a massive shift, potentially signaling a liquidity move from stablecoins into riskier assets.
🚨 Key takeaway: History shows such drops can precede major crypto market moves. Is this a sign of a coming altcoin rally or something more?
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