A recent report from Coinbase COIN highlights Bitcoin's BTC performance among digital assets since mid-February, with its dominance in total crypto market capitalization growing to 47.7% in March.
This exceptional performance was especially noticeable at the beginning of the month when the U.S. banking system turmoil began. "The stress in the banking system reinforced bitcoin’s store-of-value properties," the report states.
Because BTC primarily exists outside the conventional financial system, it safeguards against the prevailing conditions.
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Bitcoin has also profited from investor apprehension about the regulatory standing of other cryptocurrencies. The report points out that the correlation between Bitcoin and the S&P 500 stock index declined to 25% at the end of March, down from a high of 70% in May of the previous year.
Bitcoin's relative outperformance compared to other digital assets indicates investor concerns regarding the regulatory status of these assets and the lower liquidity specific to certain BTC trading pairs with stablecoins.
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