Traders once again prefer dollars over bitcoin. USDT, USDC dominance rises.
Your day-ahead look for May 27, 2026...
Key takeaways
- 1Bitcoin dominance dropped to 60% from 61.20% since May 5, while USDT rose to 7.5% and USDC to 3%.
- 2Bitcoin ETF spot funds lost $333 million on Tuesday after a $1.29 billion BlackRock IBIT block trade in dark pools.
- 3Higher U.S. Treasury yields and Fed rate expectations are driving trader preference for dollar-pegged stablecoins over bitcoin.
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Why it matters
This capital rotation from bitcoin to stablecoins signals risk-aversion and potential profit-taking in crypto markets, affecting retail investor sentiment in India where bitcoin exposure has grown. The trend mirrors early 2026 market weakness and suggests caution ahead of traditional market volatility triggers like employment data releases.
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