Crypto Carnage Causes Flight To Bitcoin Safe Haven, Dominance Demonstrates
18 Mai 2022 - 01:00AM
NEWSBTC
The crypto bloodbath continues to rage on, as bitcoin drops 13%,
although to a lesser degree than what was experienced last week.
Due to this, there have been several migration patterns recorded in
crypto investors as they look for the best safe haven. The first
had been the flight to stablecoins for cover from the unending
losses. However, the tide has changed on this once again as
investors look to now be flocking back to bitcoin, causing
dominance to rise. Bitcoin Re-Establishes Dominance The decline has
affected all cryptocurrencies in the market but data shows that
some more than others have had a worse time of it. Altcoins,
especially the small cap altcoins, have recorded the highest losses
as expected. Bitcoin is not spared from this though. Related
Reading | Ethereum Hashrate Breaks All-Time High, Will Price
Follow? The largest cryptocurrency by market cap is now down 13%
price-wise but this has not stopped it from re-establishing its
dominance over the market, touching a new six-month high. It is now
at a 44.4% dominance and it hasn’t been this high since October of
2021. BTC dominance returns | Source: Arcane Research Mostly, the
decline of investor sentiment into the negative has been one of the
major factors in driving investors towards bitcoin. Since altcoins
are getting hammered in the market, investors are looking to BTC,
which they believe to be a safer bet compared to the lesser cap
coins. The result of this has been money from altcoins being moved
into bitcoin, leaving altcoins behind this. As such, bitcoin has
only recorded a 23% decline since the month of May began, the
lowest decline of all the indexes. Others have recorded higher
declines. The Large Cap Index came in with a 28% loss in the last
two weeks, the Mid Cap Index with 31% in the same time period,
while the Small Cap Index has been hit the worse with a 37%
decline. Stablecoins Take A Hit The whole UST debacle has begun to
settle but the effects of the third-largest stablecoin crashing
continue to affect its counterpart. After the UST de-pegging, some
of that low sentiment had flowed into the largest stablecoin, USDT,
which had lost 10% of its market cap. BTC dominance reaches
six-month high | Source: Market Cap BTC Dominance on
TradingView.com One of the reasons for this though had also been
the peg of the stablecoin being challenged as bitcoin’s price
declined. It is also speculated that some of the funds leaving USDT
had flowed into another stablecoin, USDC, which happens to be the
second-largest stablecoin. Related Reading | Bitcoin Marks
Seven Consecutive Red Candles, Paints Gruesome Picture For Market
Both these stablecoins have continued to maintain their dollar peg
though. This leaves UST as the only stablecoin that lost its peg.
Featured image from Yahoo Finance, charts from Arcane Research and
TradingView.com
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