Bitcoin is proving more stable than stablecoins

Ben Caselin

WHEN markets drop, my aunt doesn’t call me about buying Japanese yen or bonds, or whatever else looks cheap. But she did call to ask – for the first time – whether now was a good time to buy Bitcoin.

Her call is a sign of how profound this crypto market shakeout has become. But her interest also reflects an understanding that, even as the storm rages, Bitcoin is different from the rest of the crypto universe. Its decline of about 26 per cent, versus about 32 per cent for Ether or 54 per cent for Solana over the last 30 days, is evidence of that differentiation. After the Terra/Luna breakdown and with meme coins collapsing, Bitcoin is reinforcing its credentials as the true base layer of decentralised finance – and will emerge stronger than ever when the clouds clear.