Bitcoin stabilizes at $26K after regulatory-induced volatility.
The price of Bitcoin (BTC) has stabilized after a period of volatility caused by regulatory issues in the cryptocurrency industry. According to CoinMarketCap, Bitcoin is currently trading at $26,147, having climbed less than 2% in the past week. Last week, the cryptocurrency lost more than $1,500 after the US Securities and Exchange Commission (SEC) sued Binance for malpractice. Binance also accused Coinbase of operating as an unregistered national securities exchange. The Coinbase indictment caused a brief price increase of $2,000, but the price soon retraced to $26,500. Despite the recent problems in the crypto market, Bitcoin’s dominance is nearly at 50%, which is the percentage of the entire crypto market that a particular asset controls. Investors tend to buy more when dominance is high. Bitcoin sees more dominance in a bear market because investors prefer to buy BTC to hedge against volatility in the market. Altcoins also suffered from volatility, but coins such as ETH, DOGE, ADA, MATIC, and SOL are starting to recover. The future for Bitcoin is unclear as it is still some distance from its 2023 high of over $31,000 and investors are waiting for the outcome of the June 14 Federal Open Market Committee (FOMC) meeting.