A Chart Everyone Must Understand: USDT Dominance

There's one chart that every serious market participant needs to study closely the USDT Dominance chart. Historically, this chart has moved in inverse correlation to the overall crypto market.

▫️When USDT dominance rises, it typically signals that liquidity is exiting the market and moving into stablecoins a defensive stance.

▫️When USDT dominance falls, it implies that stablecoins are being deployed back into the market, fueling rallies and buying activity.

But what I want to emphasize is not just how it works, but what it's shown us in the past.

Let’s go back:

▫️Feb–March 2024: The market saw a strong rally driven by the AI narrative. Hype was high, but the liquidity wasn't there yet. The rally stalled and altcoin season never took off.

▫️267 days later, in Dec 2024–Jan 2025, USDT dominance once again tapped the 3.8% level. AI agents were dominating the narrative, excitement was high. Then Trump launched his meme coin, which hit a staggering $100B market cap in just 2–3 days.
▫️And yet again, it ended in another failed rally. No sustained altseason followed. The market just wasn’t ready.

Now, another 267 days from that point puts us at August 29, 2025 a critical inflection point.

The question is: Will this be another failed rally... or the real one?

You probably already know my personal view on this upcoming cycle. But I must emphasize one thing:

If USDT dominance retests 3.8% again going into September, we should expect one final shakeout. Not another failed rally, in my opinion but a powerful move designed to trigger bearish PTSD, flush weak hands, and set the stage for a massive liquidity influx.

📌 My advice?
Don’t fully exit the market. But consider taking 30–40% profits, depending on your risk tolerance. Be ready to rotate back in after the shakeout clears and the next leg begins. #AltcoinSeason