Tether (USDT) has experienced significant capital inflows, resulting in a historic market cap for the stablecoin. However, this may not be beneficial for Bitcoin (BTC). The rising dominance of USDT suggests a possible reversal in Bitcoin's price, potentially preventing it from reaching $70,000 and setting a new all-time high. Historically, when USDT dominance increases, Bitcoin tends to face downward pressure, while declines in USDT dominance lead to Bitcoin rallies. The inflow of capital into stablecoins indicates caution or hedging against volatility, which often precedes downward moves in Bitcoin. Additionally, there are concerns about a potential investigation into Tether by the US government, which has rattled the cryptocurrency market. Despite Tether denying the existence of such an investigation, there are uncertainties surrounding the token's dollar peg. Bitcoin is currently struggling to surpass the $70,000 resistance, which is necessary to validate the "Uptober" momentum. If achieved, it could lead to new all-time highs for Bitcoin and reignite discussions about its status as a store of value.



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