Crypto Market Mixed: USDC Dominance Hits Record, Bitcoin Stable Amid Tariff Uncertainty
The crypto market witnessed a mix of significant developments and shifts in sentiment last week. USDC's market dominance surged to a record 22%, while Bitcoin's market depth increased to $500 million. However, uncertainty surrounding President Trump's tariff announcements led to increased volatility and a decrease in liquidity for top altcoins.
USDC, the stablecoin issued by Circle, has been gaining traction, with its market share rising to a record 22%. This comes as Circle announced plans to go public on the New York Stock Exchange (NYSE) in April through an IPO. Meanwhile, Bitcoin's market depth increased by 8% to $500 million between April 2 and 6, indicating maintained exposure by market makers.
The market experienced a cautious stance, with liquidity for the top ten altcoins and ETH decreasing by 12% and 8%, respectively. This was likely influenced by the significant losses across nearly all asset classes due to President Trump's tariff implementation. Derivatives markets also showed weak demand for bullish exposure, with puts commanding over 65% of the volume. Despite this, Bitcoin remained relatively stable, trading around $82k for most of the week.
The crypto market's trajectory remains uncertain, with USDC's rising dominance and Bitcoin's stable performance contrasting with the bearish outlook in options markets and decreased liquidity for altcoins. As investors reassess their outlooks, the market awaits further developments, including Circle's IPO.
