Funds flow from Bitcoin to stablecoins after US rate freeze, analysis shows

Investors are shifting capital from risky assets like Bitcoin to safe-haven stablecoins after the U.S. Federal Reserve held interest rates steady while warning of uncertainty from surging oil prices and inflation amid the conflict in the Middle East, according to an analysis by CoinDesk. The report notes that a key feature of the current market downturn is a corresponding drop in Bitcoin's dominance, which fell from 59.4% to 58.7%. Unlike past downturns, where capital from altcoins typically flowed into Bitcoin, this time funds from across the entire crypto market—including BTC—have reportedly moved into dollar-pegged tokens such as USDT and USDC.