The crypto market is witnessing a significant capital shift into dollar-pegged stablecoins as Bitcoin's price sell-off accelerates. BTC has dropped about 12% over the past week to under $66,000, pulling the broader market lower. Bitcoin's dominance rate has fallen to 58.5% from a high of 61.2% in April, while Tether (USDT) dominance has jumped to 8.30%, the highest since late February, and USD Coin (USDC) has risen to early April levels. This rotation into stablecoins echoes previous sell-offs, signaling risk aversion within crypto. However, traditional markets show no such flight, with U.S. stocks near record highs and the Dollar Index rangebound. Other major cryptocurrencies like Ether, XRP, and Solana have also dropped 8-11%, while smaller coins like BCH, SUI, and RAO have plunged nearly 20%. The trend highlights a clear flight to dollar liquidity inside the crypto ecosystem.

Key facts

• Bitcoin dropped 12% in a week to under $66,000, dragging the broader market.
• Bitcoin dominance fell to 58.5% from 61.2% high in April.
• USDT dominance hit 8.30%, highest since late February; USDC rose to early April levels.
• Other crypto majors like ETH, XRP, and SOL dropped 8-11%; smaller coins fell nearly 20%.
• Traditional markets show no flight to dollar; stocks near record highs, DXY stable.

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