The price of Bitcoin is now seeing some stability after high volatility following last week’s events in the crypto sector.
Bitcoin (BTC) price appears to have stabilized as the world’s largest cryptocurrency by market capitalization recovers from recent volatility. Throughout the past week, Bitcoin has been unstable following regulatory issues that have plagued the crypto industry and caused uncertainty and doubt.
According to data from CoinMarketCap, Bitcoin is trading at $26,147 after climbing less than 2% in the past 7 days. Last week, the royal coin lost more than $1,500 after the United States Securities and Exchange Commission (SEC) sued Binance for malpractice. Binance has also hit out at Coinbase, accusing the company of operating as an unregistered national securities exchange.
The Coinbase indictment gave way to a $2,000 Bitcoin price pump, increasing the asset’s volatility. However, this pump was short-lived as Bitcoin rallied back to $26,500, holding that price for much longer.
Interestingly, the volatile king coin frenzy was not over as BTC lost another $1,000 towards the weekend. As the weekend progressed, Bitcoin started to climb again but failed to reach $26,500.
On the other hand, Bitcoin’s dominance tells a different story. Dominance has almost reached 50% as investors continuously flock to the asset. Dominance is the percentage of the entire crypto market that a particular asset controls.
Regardless of the issues in the crypto market, the dominance of the royal coin is reaching levels not seen since April 2021. When dominance is high, investors are likely to buy more of it.
Interestingly, Bitcoin sees more dominance in a bear market. This is largely because investors prefer to buy BTC during such downtimes to hedge against market volatility. Most crypto investors and community members believe that even in a bear market, Bitcoin offers more stability than altcoins.
Altcoin price has also suffered from volatility but is recovering with Bitcoin
While Bitcoin was bleeding, the altcoin market was essentially no different when it came to volatility. In addition to the SEC lawsuits, altcoins have also suffered following the SEC’s decision to designate a few others as securities. According to the SECaltcoins like BNB, MATIC, BUSD, SAND, ADA, SOL, MANA, ATOM and AXS are also securities.
Binance’s native BNB was trading above $315 last week. However, it crashed to $222 yesterday and has only recovered to around $243 since then. While many other altcoins also fell, the coins are beginning to rally. For example, ETH, DOGE, ADA, MATIC, and SOL all saw gains. Over the past day, XRP has also climbed almost 8%. Others like LTC, TRX, AVAX and DOT all saw gains of up to 4%.
SUI is one of the biggest climbers, reaching up to 6% in the past 24 hours, according to data from CoinMarketCap.
It is unclear whether the near future would bode well for Bitcoin. Over the past few weeks, BTC has been under selling pressure and is still far from its 2023 high of over $31,000. The recent suspension of the US debt ceiling could also have an as-yet-unknown effect on Bitcoin as investors patiently await the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for June 14.
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Tolu is a Lagos-based cryptocurrency and blockchain enthusiast. He likes to demystify crypto stories to the essentials so that anyone, anywhere can understand without too much background knowledge. When not immersed in crypto stories, Tolu loves music, likes to sing, and is a movie buff.
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