The world of cryptocurrencies has been showing sanguine numbers, in view of the weekend. Wherefore the market cap of the industry has grown 3.8% over the day. Taking the numbers to well over $1.96 Trillion. Successively, Bitcoin price is now changing hands at $41,812.12, while Ethereum trades at $2946.28. The dominance of BTC is now at 40.4%, while that of ETH is at 18.0%.
Whilst the business is witnessing an increase in funding rates and transactions. The sentiments continue to remain stuck in a rut, as the fear and greed index continues to incline towards fear. This justifies the persistent fear and anxiety of investors who fear another possible plunge. Meanwhile, a proponent sheds light on the ideal portfolio, giving priority to stable coins.
Stablecoins – The Best Bet Than Bitcoin?
As previously said, Bitcoin and Ethereum are now trading well above the expected regions. The fuel for which also comes from the correlation with the S&P 500 index. Which has seen gains accounting to over 8% in the week. That said, traders still seem to be lacking confidence, which does reflect on the growing dominance of stable coins.
Consequently, stablecoins are witnessing a spike in accumulations and holdings of-late. An update coming from Whale Alert enlightens on the transfer of 249,999,995 USDT from Binance to an unknown wallet. In addition, an anonymous transaction saw the movement of 346,503,930 USDT. On the other hand, Huobi sees an inflow of 25,234,250 USDC from an unknown wallet.
Meanwhile, a protagonist from the crypto town sheds light on the ideal crypto portfolio. The proponent gives priority to stablecoins at 40%, followed by BTC at 30%. ETH with 20%, and other altcoins with 20% allocation of funds. Savvies believe holding a higher percentage of stablecoins helps contradict the bearish trends. Moreover, the dollar-cost-averaging is an added benefit.
Are Investors Holding Onto Stablecoins Ahead Of BTC’s Fall Below $40,000?
The liking of folks inclining towards stablecoins also comes from predictions of BTC price falling back to negative trends. That said, the fear of BTC falling below $40,000 and returning back to its support at around $37,500. Continues to haunt investors and merchants from the business.
Successively, as previously cited by CoinPedia, the market has been witnessing Bitcoin entering the demand zone over the last 3-weekends. Only to spectate a price drop later in the following week. Which has been a concern for folks, who do hold a fear of BTC meeting a similar fate.
Summing up, the said factors and bearish sentiments do justify the incline towards stablecoin allocation in one’s portfolio. Moreover, the prolonged bearish trends have been a major cause of negative market sentiments. That said, we can expect retailers reallocating their funds, following a consistent upward trek. Until which stablecoins would continue to hold significant dominance.