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- Crypto havoc continues to rage on, as Bitcoin plunges 13%, although to a reduced degree that what was experienced previous week.
- Because of this, there have been numerous migration patterns recorded in cryptocurrency investors as they seek a port in the storm.
- The initial had been a flight to stablecoins for cover from limitless damages. However, tides are changing now as investors are gathering together to go after Bitcoin again.
Bitcoin Sheds Its Dominance Again
The plunge has impacted all the crypto assets in the market but data suggests that a few more than others have had a worse period of it. Altcoins, specifically with minor cap altcoins, have recorded greatest damages as anticipated. Bitcoin is not from this though.
The greatest cryptocurrency by market capitalization was down by 13% recently but it hasn’t halted the crowned crypto asset from re establishing its dominance over the space, reaching a latest 6 month high. As of now, Bitcoin holds a dominance of 44.4% over the crypto sphere, and it hasn’t been this high since October 2021.
Mostly, reduction of investor sentiment into negative has been among the prime factors in pushing investors towards Bitcoin. Since altcoins are getting beat up in the crypto sphere, investors are seeking shelter under the dominance of the crowned crypto asset, which they think to be a secure bet in contrast to lesser cap coins.
The outcome of this has been funds from altcoins being mobilized into bitcoin, leaving altcoins behind this. As such, the crowned asset has recorded just 23% plunge since initiation of May, minimum decline of all indexes.
Others have experienced higher reductions. The Large Cap Index came in while receiving 28% damages during the previous couple of weeks, Mid Cap Index with 31% in similar timeframe, while Small Cap Index witnessed the worst decline of 37%.
Stablecoins Get Tangled Up
The entire UST debacle has started to settle but the impact of 3rd largest stablecoin getting heavily unstable is constantly affecting its counterpart. After UST got de-pegged, some of that lesser sentiment had flowed into the biggest stablecoin, USDT, which had shed 10% of its market capitalization.
Among the causes for this though had also been the stablecoin peg being challenged as price plunged in Bitcoin. It is also anticipated that few of the funds leaving USDT had flowed into another stablecoin, USDC, which occurs to be the 2nd biggest stablecoin.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
