The selling pressure that has become evident in the cryptocurrency market in the last week indicates that investors are turning to dollar-fixed assets. According to market data, Bitcoin deepened its pullback after surging above $80,000 in early May, falling nearly 12% to around $66,800. This move also brought weakness in the broader crypto market.
Stablecoin weight is rising again
With the decline in prices, the share of dollar-pegged crypto assets such as Tether and USD Coin in the market increased. Tether’s market dominance increased to 8.30%, reaching the highest level since the end of February. USD Coin has also returned to levels seen in early April.
The combined share of these two assets currently stands at approximately 11% of the overall crypto market. Still, this increase is considered an important signal that investors prefer to turn to dollar liquidity in crypto during volatile periods. This trend has become more visible, especially as Bitcoin’s weight in the market weakens.
Mini glossary: Stablecoin refers to crypto assets whose value is pegged to a fiat currency, usually the US dollar. Tether and USD Coin are among the most widely used stablecoins in trading pairs and as near-cash parking.
Data reveals that while Bitcoin is declining, funds in the crypto market are shifting to dollar-pegged assets, and this trend has now become a picture that is difficult to ignore.
Retreat in Bitcoin dominance
The dominance rate, which indicates Bitcoin’s share of the total crypto market, also decreased. The rate, which rose to 61.2% in April and early May, dropped to 58.5% in the latest data. This change shows not only the price decrease but also the distribution of capital to different areas within the market.
A similar picture has been seen before. It was reported that investors took a more cautious position in January and February, when Bitcoin dropped sharply from $ 90,000 to approximately $ 60,000. It is stated that the latest move reflects a similar risk aversion trend.
The selling wave also spread to altcoins
Selling pressure was not limited to Bitcoin alone. Ether, XRP and Solana lost between 8% and 11% in value in the last week. In some assets such as BCH, SUI and RAO, the decline reached approximately 20%. This broad pullback in the market appears to have further accelerated the shift to dollar-pegged assets.
On the other hand, a similar scale of dollar orientation was not seen in traditional markets. While the Nasdaq and S&P 500 indices were trading near record levels, the Dollar Index, which tracks the strength of the US dollar against major currencies, remained stuck between 98.50 and 99.50.
This divergence indicates that defensive positioning in the crypto market may be more related to intra-industry liquidity preference. Data shows that investors are choosing to hold on to dollar-pegged instruments to hedge against volatility rather than exiting the market altogether.
