Time For Panic in Crypto?

Investors,

Crypto is tanking. Bitcoin dominance is not.

The chart above compares:

• Bitcoin dominance (BTC.D) 🟠

• Total crypto market cap ex BTC & ETH (TOTAL.3) - USDT - USDC stablecoins 🔵

Amidst further concerns about the SEC’s crackdown on exchanges and the classification of which cryptocurrencies are securities, investors woke up on Saturday morning to cascading price action in the crypto ecosystem. Many altcoins, notably the ones directly named as securities in recent weeks, were down more than -20% in a day. Others were down more than -30%, evaporating a significant amount of paper value.

As it turns out, rumors were swirling about a hedge fund that was dumping coins on the market, leading to forced liquidations within the ecosystem. Unfortunately, I’m not aware of the catalyst that sparked the ongoing decline over the past 36 hours.

However, one thing is clear: Bitcoin = cryptocurrency, but cryptocurrency ≠ Bitcoin.

While Bitcoin has not been immune from the recent decline, it’s fallen by a smaller degree than the rest of the crypto universe. In turn, Bitcoin dominance has reached its highest level since May 2021 while the altcoin basket is now trading at the same levels from early January 2023 and mid-November 2022.

While this report will briefly touch on stock market dynamics from the prior week, highlighting the key charts and market internals you should know about, the majority of this report will focus on Bitcoin and crypto charts that will hopefully provide clarity on market direction, value, and probabilities.