USDT’s Golden Cross: Bad News for Bitcoin?

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USDT’s flashing a <a href="https://pricpr.com/gold">golden</a> cross and that may be bad news for <a href="https://investment-policy.com/btc-usd/">bitcoin</a>Markets

What to know:

  • A bullish golden cross has appeared on the USDT dominance chart, signaling that the Tether-issued stablecoin is likely to gain a larger share of the overall crypto market.
  • That dominance typically rises when the price if bitcoin falls, suggesting a continued rotation out of riskier crypto assets and into dollar-pegged holdings.
  • Recent data show tether’s dominance rising even as its market value declines, indicating that investors are not just waiting on the sidelines in stablecoins but are cashing out to fiat and exiting the crypto market.

A key indicator suggesting a lasting positive trend in the market has emerged on the chart tracking Tether’s USDT, the most widely used stablecoin.

That may not be good news for bitcoin , the largest cryptocurrency.

USDT, a stablecoin pegged to the US dollar, is showing a bullish technical signal called a ‘golden crossover’. This suggests its share of the overall cryptocurrency market could grow in the coming weeks.

This is bad news for Bitcoin, suggesting investors are moving their money into more stable assets – things that hold their value against the dollar – instead of choosing riskier cryptocurrencies.

To understand why, it helps first to grasp USDT’s role in crypto markets.

With a market value of $186.84 billion, Tether is the third-largest cryptocurrency after Bitcoin and Ethereum. It’s designed to maintain a consistent value of 1:1 with the U.S. dollar, and is generally considered a digital representation of the dollar.

Funding currency of choice

It’s now the most popular currency for investing, used to buy cryptocurrencies and participate in decentralized finance activities like lending and borrowing.

Bitcoin’s dominance – its share of the total cryptocurrency market – usually increases when the price of Bitcoin drops. This happens because investors tend to move their money out of riskier cryptocurrencies and into Bitcoin, which is seen as a safer option, similar to what happens in traditional financial markets during times of uncertainty.

Recent market activity showed a significant shift last week. As the price of Bitcoin dropped nearly 14% – briefly falling under $60,000 – the share of USDT in the market increased dramatically by 13.5% to reach 9%, the largest single-day increase seen since March 2025.

When the 50-week moving average rises above the 200-week average – a pattern called a golden cross – it indicates that Tether (USDT) is likely to continue gaining strength, suggesting the recent shift in market share might not be finished.

Essentially, if people become more hesitant about investing in cryptocurrencies generally, we might see even more money moving into the stablecoin USDT as a safer option.

It’s important to realize that the money held in stablecoins isn’t necessarily poised to flow back into the market. Some investors might choose to cash out their holdings and exit the crypto space completely.

Looking at the market last week, something interesting happened with Tether (USDT). While it became a bigger piece of the overall crypto pie, the actual amount of money *in* USDT actually went down for the third week in a row. To me, that means a lot of money didn’t stick around – it probably left the crypto market altogether. It’s a signal that people are cashing out, not just moving funds between coins.

Despite a recent positive technical signal called the ‘golden cross,’ Bitcoin experienced its worst week in months. This downturn happened while money continued to leave U.S. Bitcoin ETFs, and as investors increasingly put their money into artificial intelligence (AI) stocks.

Everything that’s been happening suggests a clear trend: people are actually losing interest in taking risks with cryptocurrency, and it’s not just a temporary slowdown.

As long as Tether (USDT) remains the preferred stablecoin, and money doesn’t start flowing back into more volatile investments, Bitcoin and the overall market are likely to continue falling in value.

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2026-06-09 12:50