With extreme volatility, liquidations and regulation optimism, the crypto market has seen nearly everything in the last few days. Additionally, Bitcoin has witnessed a sharp increase in volatility during the last week as the digital asset spiked from $37,000 to nearly $43,000.
While the crypto asset has erased most of its gains in the past 48 hours, it still managed to hold on to the price level of $39,000. With a market capitalization of $740 billion, BTC now accounts for almost 41% of the total value of digital assets.
A gradual increase has been observed in the market dominance of Bitcoin during the recent week. One of the major reasons behind that was a substantial decline in altcoins. In terms of weekly performance, the price of crypto-asset Solana and Cardano dipped by almost 10%, compared to a drop of 3% in Bitcoin.
“After yesterday’s concerning CPI data, Bitcoin remains stable at around $39,000. February’s US inflation came in as expected at 7.9% year-over-year and 0.8% month-over-month. This is larger than January’s month-over-month increase of 0.6%, showing that inflation is accelerating,” said Marcus Sotiriou, an Analyst at GlobalBlock.
Regulation and Adoption
Optimism around Bitcoin and other digital currencies increased after US President Joe Biden signed a new executive order to explore the possibilities around the emerging assets. In terms of adoption, Dubai recently adopted an initial crypto law and established an authority to oversee the development.
“History has been made in Dubai this week as they have approved the first law to regulate digital assets. In addition, they have established a regulator to oversee crypto activities and regulate crypto service providers. Sheikh Mohammed said, “The goal is to establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally.” It is clear that an increasing amount of countries are racing to become global leaders in crypto,” Sotiriou said.
