The price of Bitcoin is now experiencing some stability after heavy volatility following last week’s events in the crypto sector.
The price of Bitcoin (BTC) seems to have stabilized as the world’s largest cryptocurrency by market cap recovers from recent volatility. Throughout last week, Bitcoin was unstable following regulatory issues that plagued the crypto industry and caused uncertainty and doubt.
According to CoinMarketCap data, Bitcoin is trading at $26,147 after climbing less than 2% over the last 7 days. Last week, the king coin shed more than $1,500 after the US Securities and Exchange Commission (SEC) sued Binance for malpractice. Binance also went after Coinbase, accusing the company of operating as an unregistered national securities exchange.
The Coinbase indictment gave way to a Bitcoin price pump of $2,000, increasing the asset’s volatility. However, this pump was shortlived as Bitcoin retraced to $26,500, maintaining this price for much longer.
Interestingly, the king coin’s volatile spree wasn’t over, as BTC lost another $1,000 towards the weekend. As the weekend progressed, Bitcoin began to climb again but could not hit $26,500.
On the other hand, Bitcoin’s dominance tells a different story. The dominance has nearly hit 50% as investors continuously flock to the asset. Dominance is the percentage of the entire crypto market a particular asset controls.
Regardless of the problems in the crypto market, the king coin’s dominance is reaching levels not seen since April 2021. When dominance is high, investors are likely to buy more.
Interestingly, Bitcoin sees more dominance in a bear market. This is largely because investors prefer to buy BTC at such downtimes to hedge against volatility in the market. Most crypto investors and community members believe that even in a bear market, Bitcoin offers more stability than altcoins.
Price of Altcoins Also Suffered Volatility but Are Recovering Along with Bitcoin
As Bitcoin bled, the altcoin market was essentially no different regarding volatility. In addition to the SEC’s lawsuits, altcoins also suffered following the SEC’s decision to designate a few more as securities. According to the SEC, altcoins like BNB, MATIC, BUSD, SAND, ADA, SOL, MANA, ATOM, and AXS are also securities.
Binance’s native BNB was trading at more than $315 last week. However, it crashed to $222 yesterday and has only recovered to about $243 since then. While many other altcoins also fell, the coins are starting to recover. For instance, ETH, DOGE, ADA, MATIC, and SOL all saw gains. In the last day, XRP has also climbed nearly 8%. Others like LTC, TRX, AVAX, and DOT have all seen gains of up to 4%.
SUI is one of the largest climbers, pulling in up to 6% in the last 24 hours, according to data from CoinMarketCap.
It is unclear whether the near future would augur well for Bitcoin. Over the last few weeks, BTC suffered through selling pressure and is still some distance from its 2023 high of over $31,000. The recent suspension of the US debt ceiling could also have a yet-to-be-known effect on Bitcoin as investors patiently await the outcome of the scheduled June 14 Federal Open Market Committee (FOMC) meeting.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Subscribe to our telegram channel.
Join
