Capital is rotating into USDT, USDC stablecoins as BTC price wilts: Crypto Daybook Americas
As Bitcoin's price declines amid Fed uncertainty and geopolitical tensions, investors are shifting capital into stablecoins like USDT and USDC.Summary
Capital is flowing out of Bitcoin and altcoins and into stablecoins, particularly USDT and USDC, as the Federal Reserve signals no immediate bullish intervention and geopolitical instability increases. The Fed's decision to hold interest rates steady, coupled with warnings about economic uncertainty following the Iran war-led oil price spike, has triggered risk aversion in the market. Bitcoin dipped below $70,000, and its dominance has decreased as investors seek the safety of dollar-pegged assets. The increased share of USDT and USDC in the total crypto market cap reflects this flight to safety. Market analysts at Nansen note that central banks are no longer a reliable catalyst for crypto gains and that institutional inflows are focused on core market assets rather than riskier altcoins. Traditional markets also show risk aversion, with the Dollar Index rising and stock futures falling. Key economic data releases are expected today, including U.S. jobless claims and manufacturing index.
(Source：CoinDesk)