Bitcoin dominates 47.6% of the cryptocurrency market. Ether only 19.9%.
Altcoin prices fell sharply in just a few days.
Bitcoin’s (BTC) dominance in the cryptocurrency market is at levels not seen in more than two years. This is due to the crisis that altcoins are experiencing due to the indications of the Securities and Exchange Commission (SEC) of the United States, that they are securities.
As shown by the graphics offered by CoinMarketCap, bitcoin controls 47.6% of the entire cryptocurrency market. It far exceeds the dominance of ether (ETH), which has control over 19.9% of the ecosystem.
As the following image shows, the current dominance of bitcoin over the market not seen since May 2021.
Altcoins are securities, according to the US SEC.
The increase in the dominance of bitcoin occurs in a context in which users they appear to be moving their holdings from other crypto assets to BTCafter the United States SEC pointed out that at least 12 cryptocurrencies are considered securities.
As reported by CriptoNoticias, the US securities regulator sued the cryptocurrency exchanges Binance and Coinbase. He alleged that they offered Americans securities without registration, which translates into a violation of federal securities laws.
Said securities, according to the SEC, are the cryptocurrencies SOL from Solana, ADA from Cardano, AXS from Axie Infinity, FIL from Filecoin, SAND from Sandbox, MANA from Decentraland, ATOM from Cosmos, ALGO from Algorand, MATIC from Polygon, and tokens. COTI of Coti. Also BNB, Binance’s cryptocurrency, and BUSD, the stablecoin that came to be supported by that exchange.
The price of all these cryptocurrencies fell sharply after the SEC’s signaling became known. Since June 8, the prices of these assets They were shown in the red. This situation worsened last weekend, when most of the assets rated by the regulator fell more than 20% in a matter of hours.
By being considered securities, the assets become subject to regulation and supervision by the Securities and Exchange Commission. They are seen before that body as a financial instrument that has intrinsic monetary value and that can be negotiated in the markets.
The impact that the SEC’s characterization of cryptocurrencies as a security caused to the market is due to the significant influence that regulatory entities maintain over the cryptoactive ecosystem. To this is added the FUD (fear, doubt and uncertainty) that became widespread among the community as a result of the lawsuits.
In addition to the migration of other cryptocurrencies to bitcoin, which responds to an increase in its dominance, important exits from exchanges have also been reported. That is to say, more and more people withdrawing their money from exchange houses.
As this medium reported in recent days, more than 80 thousand bitcoins had been withdrawn from exchanges. On June 7, shortly after the SEC’s lawsuit against Binance became known, that company recorded withdrawals in the order of $691 million, more than 50% of all withdrawals reported by other exchanges.
Bitcoin is not affected as much by the altcoin crisis
While all this is going on around bitcoin, the pioneer cryptocurrency is not so affected by these events. The lawsuits and the altcoin crisis have not affected this asset to a great extent. Only reporting high volatility at the beginning of last week, which has already decreased.
The reason why bitcoin is not directly affected by these events is that the end of BTC is different from that of many of the altcoins.
Unlike projects known and flagged by the SEC, behind bitcoin there is no foundation or a team of promoters. Nor is it a figure of a financial instrument in which it is invested to obtain profitability. As the CriptoNoticias Cryptopedia points out, bitcoin is digital money.