Bitcoin briefly slipped below the $44,000 level on Wednesday, touching $43,678 as broader weakness swept across digital assets. According to the source material, the total crypto market fell 4.5% to roughly $2.25 trillion. Intraday action showed BTC dropping from around $46,000 shortly after 3:00 p.m. EST, highlighting a sharp shift toward risk-off positioning.
Major cryptocurrencies moved lower
The decline was not limited to bitcoin. Ethereum fell 5.9%, while Solana lost 7.8%. Among the top ten crypto assets, Terra (LUNA) posted the steepest decline at 9.2%. The report also identified Convex Finance (CVX), Spell Token (SPELL), and Axie Infinity (AXS) as some of the biggest losers during the selloff. A few tokens, including Chainlink (LINK), Olympus (OHM), and LEO Token (LEO), were noted as relatively resilient.
Stablecoins took a larger share of trading
Trading flows suggested that investors were moving toward stablecoins during the downturn. Out of roughly $98.5 billion in daily crypto trading volume, stablecoins accounted for about $58.8 billion. By market value, the stablecoin sector represented approximately $166.4 billion of the total market. Tether (USDT) alone handled around $53 billion in global swaps. USDC, with a market capitalization near $42.6 billion, had become the sixth-largest crypto asset by market value, though it was also reported trading at $0.99, showing that even stablecoins felt some pressure during the volatility.
Bitcoin dominance hits a multiyear low
In market cap terms, bitcoin was valued at about $836.2 billion, while ethereum stood at roughly $427.7 billion. One of the more notable data points was bitcoin’s market dominance, which dropped to 37.5%, its lowest level since June 2018. Ethereum’s dominance was listed at 19.2%. The figures indicate that bitcoin’s share of the overall crypto market remained historically weak even amid a broad market decline.
Sentiment turned to extreme fear
Investor sentiment reflected the selloff. The Crypto Fear & Greed Index registered 24, a reading classified as “extreme fear.” Although bitcoin had recovered to hold above $44,000 by press time, its 24-hour trading range remained wide at roughly $43,700 to $46,000, underscoring the fragile and volatile mood across the market.