BTC Market Cap Dominance Trends Up; PayPal Allows Crypto Transfer to External Wallets

Chart of the Day 

The broader crypto market saw a surge late Tuesday as two U.S. senators unveiled a widely anticipated crypto bill to regulate the industry. The bill has been perceived as friendly by the crypto community on Twitter, as it advises the CFTC to take over the primary oversight role from the SEC. However, wide fluctuations ensued from investors' anxiety about stagflation and the persistent geopolitical turmoil in the early hours of Wednesday (Asian trading hours). BTC momentarily reclaimed the $31k level before going south to just below the $30k key psychological level. As of the time of writing, BTC has climbed back above the $30k handle after posting a 3.4% gain in the last 24 hours. Moving in tandem with BTC, ETH is trading precariously above the $1,800 level after rising by 3% during the same period. Major altcoins have largely flipped green, with many mid-to-large caps regaining ground lost at the beginning of the week. 

Meanwhile, BTC's market cap dominance continues its uptrend, with the latest reading sitting at 46.13%, a level that was last seen in October 2021. The combined dominance of BTC and major stablecoins, a popular de-risking alternative in the crypto market, demonstrates a similar pattern. The combined dominance, now at 59.2%, has reached a 16-month high — but is still a little shy of the average dominance level seen during the DeFi summer in 2020.