According to a research report by Coinbase, cryptocurrency markets, particularly Bitcoin (BTC), have displayed resilience in the face of recent upheaval in the U.S. banking system. Bitcoin has outperformed other digital assets since mid-February, with its dominance as a percentage of total crypto market cap increasing to 47.7% from 43.9% in March. The stress in the banking system has reinforced Bitcoin's store-of-value properties, and BTC mainly exists outside of the traditional financial system, offering a hedge against current conditions. Bitcoin has also benefited from investor concerns about the regulatory status of other cryptocurrencies, and its correlation to the S&P 500 stock index has dropped to 25% at the end of March from a peak of 70% in May last year. The relative outperformance of Bitcoin also reflects investor concerns about the regulatory status of other digital assets and thinner liquidity specific to some BTC versus stablecoin trading pairs.
(By Will Canny)
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