The cryptocurrency market has shown resilience even as the US banking system faced turmoil, with Bitcoin (BTC) in particular outperforming other cryptocurrencies, according to Coinbase 3. It states in the investigative report dated March 31.
Bitcoin’s rise has outpaced other cryptocurrencies since mid-February, with Bitcoin’s share of cryptocurrency market capitalization reaching 47.7%, up from 43.9% in March, Coinbase notes. there is The outperformance accelerated earlier in the month, coinciding with the onset of turmoil in the US banking system, the report said.
“One reason for this is that stress in the banking system has strengthened Bitcoin’s store-of-value properties,” the report said, adding that since BTC exists largely outside of the traditional financial system, “the current It provided a hedge against the situation.”
It has also benefited from investor concerns over regulation of other cryptocurrencies, analysts David Duong and Brian Cubellis wrote.
Bitcoin’s correlation to the S&P 500 stock index fell from a peak of 70% in May last year to 25% at the end of March.
Bitcoin’s relative outperformance also reflects investor concerns over regulation of other crypto assets, as well as the reduced liquidity inherent in some BTC vs. stablecoin trading pairs, he said. The report adds.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: CoinDesk
｜Original: US Banking System Turmoil Has Spurred Bitcoin Outperformance: Coinbase
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