BTC Dominance Slips as Traders Rotate Back Into USDT and…

Bitcoin's share of the total crypto market has pulled back to 60% from 61.2% since May 5, while USDT dominance climbed from 7% to 7.5% and USDC rose from 2.8% to 3% over the same period. The divergence is a clean signal: traders are rotating out of BTC and back into tokenized dollars.

The macro backdrop explains the move. Bond markets are pricing in a longer-than-expected period of elevated Fed rates, which makes the dollar and dollar-linked assets more attractive relative to yield-free assets like Bitcoin. FxPro chief market analyst Alex Kuptsikevich framed it directly: "If cryptocurrencies are once again acting as a barometer of sentiment in global financial markets, this looks like an early signal of a reversal towards profit-taking."

The pattern has precedent. A near-identical stablecoin dominance surge occurred in late January before BTC sold off to $63,000 in early February.