Crypto traders are again favoring dollar-pegged stablecoins over bitcoin, as indicated by dominance rates. BTC dominance fell from 61.20% on May 5 to 60%, while USDT dominance rose from 7% to 7.5% and USDC from 2.8% to 3%. This shift suggests money is rotating into tokenized dollars, likely due to expectations that the Fed will keep interest rates elevated longer, making dollar-linked assets more attractive. A similar pattern occurred in late January, preceding a BTC selloff to $63,000 in February. Bitcoin is currently trading near $75,900 after a large block trade in BlackRock's bitcoin ETF IBIT saw over $1 billion in shares change hands. The 11 spot ETFs lost over $333 million on Tuesday, extending two-week outflows to $2.26 billion. Meanwhile, gold and precious metals funds are attracting inflows. Ether, XRP, Solana, and the CoinDesk 20 Index each fell about 2% in 24 hours. Analysts see this as a potential early signal of profit-taking and risk aversion, with investors possibly moving to cash ahead of summer. In traditional markets, Nasdaq e-mini futures hit record highs above 30,000, while WTI oil fell 3% to $90 per barrel.

Key facts

• BTC dominance fell from 61.20% to 60% since May 5, while USDT rose to 7.5% and USDC to 3%.
• Large block trade in BlackRock's bitcoin ETF saw over $1 billion in shares change hands.
• Spot bitcoin ETFs lost over $333 million on Tuesday, extending two-week outflows to $2.26 billion.
• Ether, XRP, Solana and CoinDesk 20 Index each dropped about 2% in 24 hours.
• Analysts view stablecoin dominance rise as potential early signal of profit-taking and risk aversion.

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