Higher dominance = capital sitting in USDT rather than risk assets.
Markets cycle through risk appetite and liquidity preference
Uptrend: capital flows from stable into BTC and alts → dominance down.
Range / Uncertainty: capital retreats into stable, dominance up.Risk return: capital redeploys into risk assets, dominance falls again.
Right now, dominance is acting like liquidity preference rising. That’s not bearish or bullish by itself — just disciplined allocation behavior.