# Tether dominance signals more crypto selloff ahead

> After the CLARITY Act failed, stablecoin flows suggest traders are moving back into cash and Bitcoin could drop below $70,000.
- Title: Tether dominance signals more crypto selloff ahead | Shortify
- Summary: After the CLARITY Act failed, stablecoin flows suggest traders are moving back into cash and Bitcoin could drop below $70,000. Tether dominance breaking…
- Keywords: tether, usdt, stablecoin dominance, clarity act, bitcoin, crypto markets, technical analysis, viaquant, fomc, market volatility, business, finance
- Source: TradingView — https://tradingview.com/chart/USDT.D/yME3OmdN-USDT-D-Clarity-Failed-but-Cash-Succeeded
- Published: 2026-09-16T01:23:15+00:00
- Read time: 1 min
- Topics: tether, usdt, stablecoin dominance, clarity act, bitcoin, crypto markets, technical analysis, viaquant, fomc, market volatility, business, finance
## CLARITY Act failure spooks markets
The Senate rejected the CLARITY Act, bringing uncertainty back to crypto. Traders are watching Tether dominance as a key signal for where money flows next.
## Tether dominance tracks market fear
USDT.D measures what percentage of crypto market cap sits in Tether stablecoins. When it rises, traders are converting crypto back into cash.
## Key channel broken to upside
On September 9, Tether dominance broke decisively above a parallel channel tracked since April. It's now using that upper boundary as a launchpad higher.

> Dominance decisively broke out back above the channel, and for the past week USDT.D has used the upper boundary as a launching point.
## Target points to Bitcoin pain
The breakout suggests USDT.D will climb toward 8.15% to 8.25%. That would likely push Bitcoin below $70,000 as traders pile into stablecoins.
## Old resistance now supports rally
Recent lows formed at November 2021 resistance around 6.75%, which has flipped to support. The MACD indicator also shows strong momentum building.
## FOMC decision adds volatility risk
The Federal Reserve's rate decision is imminent, which could amplify the move. Traders should prepare for significant price swings across crypto markets.

> The FOMC decision is tomorrow, so brace for significant volatility.
## Key takeaway

Tether dominance breaking above its channel suggests continued conversion from crypto to cash, potentially pushing Bitcoin below $70,000.