🔥 Stable Coin Dominance Signaling Potential Bottom

2022년 9월 11일

In todays analysis I want to focus on the stable coin dominance, which is calculated by the following formula:

(CRYPTOCAP:USDT+CRYPTOCAP:USDC)/CRYPTOCAP:TOTAL)

I'm only looking at USDT and USDC since they are the largest stables by far, and BUSD's marketcap is not available on Tradingview (afaik).

As seen on the chart, the stable coin dominance has been steadily rising over the last couple of years. This indicates that stables are, relatively, becoming a larger part of the total crypto market cap.

During this period, the stable coin dominance has been following a bullish channel. Every time the top of the channel has been hit (red), it coincided with a major bottom for BTC. Every time the bottom of the channel has been hit, it coincided with a major top for BTC.

With the stable coin dominance falling ever since it hit the top of the channel in June, a case can be made for the fact that BTC has bottomed and that we're only going up from here.

For the coming few weeks I'm still more bearish than bullish on crypto, but I still find it interesting to take a look at potential bottom indicators.