Bitcoin (BTC), which measures the cryptocurrency’s market share, has increased sharply in the past two months since the beginning of the ongoing U.S. financial sector instability.

TradingView’s charting platform has tracked data since early March and found that the dominance rate of the top cryptocurrency has risen from 42% to near 49 percent, which indicates its outperformance in comparison to the wider market.

The SPDR S&P Regional Banking Exchange-Traded Fund (ETF), that aims to replicate an index of regional U.S. bank performance, has plummeted by 35% in the same period.

Three U.S. Banks failed in March – Silicon Valley Bank, Signature Bank, and Silvergate Bank. This triggered fears of a full blown banking crisis. First Republic Bank (FRCB), the latest victim in the banking crisis, has been revealed. Shares of Los Angeles based lender PacWest Bancorp fell by over 60% on Tuesday.

Jerome Powell, Chairman of the U.S. Federal Reserve, said that the banking sector was “sound and resilient”.

Lewis Harland, portfolio manager at Decentral Park Capital, said that the growing dominance of bitcoin in the market amid the instability in the banking sector and the decline in banking stocks are evidences of its increasing appeal as an anti-U.S. Dollar play or a bet on dollar weakness, just like gold and oil.

When regional bank shares collapse, you see BTC outperforming the rest of the crypto market. Harland, a CoinDesk reporter, said that this signals BTC as the anti-dollar liquid investment for investors in the face of the current crisis.

The Federal Reserve’s expectations for a new liquidity easing have increased amid the banking crises, signaling dollar weakness in the future. The Fed raised rates by 25 basis point on Wednesday and hinted at a possible pause for June.

At the time of press, the dominance rate was 48.5%. It had recently reached a record high of 48.9%. (Decentral Park Capital). (Decentral Park Capital).

BTC’s dominance is currently approaching the upper limit of its multi-year range. Harland believes that a breakout would indicate continued BTC performance.

Harland stated that Bitcoin dominance was looking to break the three-year oscillation patterns. “A break of 50 percent would signal a new market paradigm of BTC’s prolonged outperformance in the market.”

CoinDesk’s data shows that Bitcoin has risen 48% since March 10, when regulators Silicon Valley Bank shut down. This run-up is similar to the positive performance in 2013 during the Cyprus banking crisis.

Parikshit Miishra is the editor.