Bitcoin’s Dominance Skyrockets Amidst U.S. Banking Turmoil
Key Points:
- BTC’s dominance rate increased from 42% to 22-month highs near 49%.
- SPDR S&P Regional Banking ETF tanked by 35% since early March.
- Decentral Park Capital’s Lewis Harland says BTC’s growing market dominance is evidence of its appeal as an anti-U.S. dollar play
Bitcoin’s (BTC) dominance rate, measuring the cryptocurrency’s share in the broader market, has risen dramatically since the onset of the ongoing U.S. banking sector instability almost two months ago. This is a sign that Bitcoin is outperforming the broader market.
According to TradingView, the dominance rate increased from 42% in early March to 49%, the highest in 22 months. This increased dominance rate is a reflection of the top cryptocurrency’s strength, especially when compared to the SPDR S&P regional banking ETF. The ETF has lost 35% over the same time frame.
The banking crisis that started in March led to the failure of three U.S. banks: Silicon Valley Bank (SVB), Signature Bank (SBNY), and Silvergate Bank (SI). This triggered fears of a full-blown banking crisis. First Republic Bank (FRCB) was the latest victim of the crisis, and to make matters worse, shares in Los Angeles-based lender PacWest Bancorp (PACW) plummeted over 60% on Wednesday.
Despite the current banking instability, Federal Reserve Chairman Jerome Powell said the banking sector is “sound and resilient.” However, the increasing market dominance of Bitcoin in the midst of this instability and the slide in banking stocks is evidence of the cryptocurrency’s growing appeal as an anti-U.S. dollar play or bet on the dollar weakness, much like gold and oil.
According to Decentral Park Capital’s Portfolio Manager Lewis Harland, renewed liquidity easing by the Federal Reserve (Fed) is expected amid the banking crisis, signaling dollar weakness ahead. This is further supported by the Fed’s decision to raise interest rates by 25 basis points and potentially pause in June. Overall, the increasing market dominance of Bitcoin clearly indicates its growing strength and appeal in the current market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
Author
Bitcoin
Bitcoin’s Dominance Skyrockets Amidst U.S. Banking Turmoil
Key Points:
- BTC’s dominance rate increased from 42% to 22-month highs near 49%.
- SPDR S&P Regional Banking ETF tanked by 35% since early March.
- Decentral Park Capital’s Lewis Harland says BTC’s growing market dominance is evidence of its appeal as an anti-U.S. dollar play
Bitcoin’s (BTC) dominance rate, measuring the cryptocurrency’s share in the broader market, has risen dramatically since the onset of the ongoing U.S. banking sector instability almost two months ago. This is a sign that Bitcoin is outperforming the broader market.
According to TradingView, the dominance rate increased from 42% in early March to 49%, the highest in 22 months. This increased dominance rate is a reflection of the top cryptocurrency’s strength, especially when compared to the SPDR S&P regional banking ETF. The ETF has lost 35% over the same time frame.
The banking crisis that started in March led to the failure of three U.S. banks: Silicon Valley Bank (SVB), Signature Bank (SBNY), and Silvergate Bank (SI). This triggered fears of a full-blown banking crisis. First Republic Bank (FRCB) was the latest victim of the crisis, and to make matters worse, shares in Los Angeles-based lender PacWest Bancorp (PACW) plummeted over 60% on Wednesday.
Despite the current banking instability, Federal Reserve Chairman Jerome Powell said the banking sector is “sound and resilient.” However, the increasing market dominance of Bitcoin in the midst of this instability and the slide in banking stocks is evidence of the cryptocurrency’s growing appeal as an anti-U.S. dollar play or bet on the dollar weakness, much like gold and oil.
According to Decentral Park Capital’s Portfolio Manager Lewis Harland, renewed liquidity easing by the Federal Reserve (Fed) is expected amid the banking crisis, signaling dollar weakness ahead. This is further supported by the Fed’s decision to raise interest rates by 25 basis points and potentially pause in June. Overall, the increasing market dominance of Bitcoin clearly indicates its growing strength and appeal in the current market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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