Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

Bitcoin dominance is soaring as the overall crypto market bleeds. The current macro conditions have forced investors to take refuge in BTC and stablecoins. Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit Bitcoin dominance has been on the rise since May this year after moving sideways in previous months. The metric, used to measure the percentage of the crypto market cap formed by Bitcoin, stands at 47% approaching levels last seen in November 2021. During this period, BTC’s price took a final move to the upside and reached $69,000 before an overall market crash took it to its year-over-year low at $24,000 in May 2022. According to a recent report posted by Arcane Research, dominance across BTC, USDT, and USDC hints at a de-risking market: Currently the combined dominance of BTC, USDT, USDC, and BUSD sits at 59.2%, which is the highest dominance seen by this “flight to safety bundle” since early April 2021. 59.2% is still 5-10% shy of the dominance throughout most of 2020. At that time, Bitcoin dominance alone sat north of 60%. The boom in non-fungible tokens (NFTs), rise in popularity of decentralized finance (DeFi) protocols, memecoins like DOGE and SHIB, contributed to the decline in this metric and drove the total market cap for cryptocurrencies to above $2 trillion. Arcane Research added that Bitcoin, Ethereum, and popular stablecoins have over 77% of crypto market cap dominance. Thi...