- Polygon network’s token MATIC, Cardano and Solana prices declined in double-digits since Friday as Bitcoin dominance continued to rise.
- BTC dominance increased to 45.91% at the time of writing, observing a 1% increase since Friday.
- The Securities and Exchange Commission has labeled ADA, MATIC and SOL as securities, increasing the selling pressure on these assets.
Bitcoin dominance is increasing consistently since Friday. It is likely that market participants are rotating capital from Polygon (MATIC), Cardano (ADA), and Solana (SOL) to Bitcoin. These assets rank in the list of cryptocurrencies labeled as “securities” by the US Securities and Exchange Commission (SEC).
MATIC, Cardano and Solana crumble under rising selling pressure
The US SEC’s regulatory crackdown on cryptocurrencies in its lawsuit against Binance and Coinbase has set a series of events in motion, triggering a bloodbath in crypto. Altcoins that were labeled as securities by the US financial regulator have suffered a double-digit drop in their prices as traders shed their holdings.
Altcoin prices decline under selling pressure
Alongside altcoin bloodbath, Bitcoin’s dominance has increased from 44.89% to 45.91% since Friday. Based on data from CoinGecko, the largest asset by market capitalization continues to dominate the ecosystem as altcoins crumble under selling pressure from the uncertainty among traders.
Binance’s Changpeng Zhao (CZ) attempted to explain the narrative driving the decline in altcoin prices and the mass sell off experienced by MATIC, SOL and ADA. CZ assured market participants that Binance is not converting its holdings to fiat.
Why is the market is going up or down? No one really knows. A lot of people claim to know, and can often pin it on a single (often wrong) reason. In reality, there are many sellers and buyers in a market, everyone may have their own reasons. A few examples.— CZ Binance (@cz_binance) June 10, 2023
False narrative:… pic.twitter.com/LQDkEOK2as
The exchange’s crypto reserves have increased over the past few weeks. CZ asks crypto traders to manage their fear, greed and risks while the exchange focuses on ensuring smooth operations of the trading platform.
If altcoin market capitalization continues to decrease and Bitcoin dominance rises, the asset could begin its recovery in the short term.
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