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Bitcoin dominance is increasing consistently since Friday. It is likely that market participants are rotating capital from Polygon (MATIC), Cardano (ADA), and Solana (SOL) to Bitcoin. These assets rank in the list of cryptocurrencies labeled as securities by the US Securities and Exchange Commission (SEC).

Also read: Vitalik Buterin proposed this roadmap for Ethereum as the altcoin battles intense selling pressure

The US SECs regulatory crackdown on cryptocurrencies in its lawsuit against Binance and Coinbase has set a series of events in motion, triggering a bloodbath in crypto. Altcoins that were labeled as securities by the US financial regulator have suffered a double-digit drop in their prices as traders shed their holdings.

Altcoin prices decline under selling pressure

Alongside altcoin bloodbath, Bitcoins dominance has increased from 44.89% to 45.91% since Friday. Based on data from CoinGecko, the largest asset by market capitalization continues to dominate the ecosystem as altcoins crumble under selling pressure from the uncertainty among traders.

Binances Changpeng Zhao (CZ) attempted to explain the narrative driving the decline in altcoin prices and the mass sell off experienced by MATIC, SOL and ADA. CZ assured market participants that Binance is not converting its holdings to fiat.

The exchanges crypto reserves have increased over the past few weeks. CZ asks crypto traders to manage their fear, greed and risks while the exchange focuses on ensuring smooth operations of the trading platform.

If altcoin market capitalization continues to decrease and Bitcoin dominance rises, the asset could begin its recovery in the short term.

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Top 3 altcoins bleed in double-digits as Bitcoin dominance rises: MATIC, Cardano and Solana - FXStreet