The rapid shift toward dollar-pegged stable assets in recent weeks signals a growing risk-off sentiment across the crypto market.
The recent wave of weakness in the crypto market has pushed investors toward dollar-pegged stable assets at an accelerating pace. While major cryptocurrencies continue to slide, the share of these digital dollars in the overall market has climbed to its highest level since April.
These dollar-backed assets serve as both a funding tool for trading and a safe haven during periods of uncertainty. As volatility increases, investors often exit riskier tokens and move into more stable instruments, strengthening the current trend. The sharp pullback seen in major coins over the past weeks has further amplified this shift.
Analysts note that rising dominance of such assets has historically aligned with early stages of bear cycles. Technical indicators showing renewed momentum above key thresholds support this view. If dominance continues to rise, it may signal that the broader market could remain under pressure in the short term.
