On the trading platform of the US crypto trader Coinbase, a bitcoin cost around $29,850 on Wednesday morning, around 5 percent less than a week ago. Just under a week ago, $25,338 was the lowest level since July 2021. The market capitalization of the “crypto key currency” fell within the last seven days by another around 10 billion dollars to almost 570 billion.
The fact that the Bitcoin price is holding up better than the rest of the market is also registered in the trading room of Crypto Finance in Zug: “Since the market was recently in sell-off mode, we saw a large rotation in Bitcoin,” says a current market commentary. Investors are keen to get out of riskier digital assets.
This also explains why Bitcoin’s market dominance has increased again in the wake of the collapse of the Terra stablecoin (UST). Bitcoin’s market cap currently accounts for 42 percent of the total market ($1.34 trillion). According to Crypto Finance traders, this dominance could be significantly accentuated if the macroeconomic environment remains uncertain.
According to market observers, many investors fear a sharp reaction from the regulators in the wake of the UST debacle. The high losses of small investors could accelerate the regulation projects, according to a comment from UBS. For example, US Treasury Secretary Janet Yellen promised a regulatory proposal for stablecoins later this year.
However, other major blockchain currencies have to pay tribute to the newly gained market power of Bitcoin. The weekly losses of Ether and Co. range between 6 percent (BNB) and almost 25 percent (AVAX).