The traditional financial market has faced many different problems recently and has helped create new dynamics in the market. The most striking of these is the one that experienced a great explosion during the pandemic period. cryptocurrency was the market. The problems triggered by the pandemic contributed greatly to the increase in adoption. However, when the fast-growing new sector brought along many regulatory deficiencies, the authorities started to follow the sector closely.
According to some reports, the largest stablecoin USDT, is widely used by Russia to send money to the west, evading KYC and sanctions imposed. About 3 brokers have been identified in Moscow who sell thousands of dollars worth of stablecoins for cash and then exchange them to the UK for pounds. All of these complete transactions for cash but without any KYC.
Authorities, on the other hand, closely follow these and similar developments, especially USDT, which are important players in the crypto money market. stablecoinMay begin to focus more on USDT dominance is waning as traders are now more focused on Bitcoin and other altcoins, and it has been down for quite some time. However, if the authorities start cracking down on Tether, big problems can arise in the market.
Currently, the market cap and USDT dominance are bearish and they may soon reach lower support as they are both trading along the descending trendline. If this happens, more problems may arise in the coming days.
As such, cryptocurrencies may face pressures despite their constructive intentions. Therefore, if levels drop as stated above, there will be a fair chance for a significant crash to chase the crypto space.
You can follow the current price action here.