Thursday, February 29, 2024

Bitcoin reaches 50% market dominance for first time in 2 years

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Bitcoin (BTC) dominance, the measure of how a lot Bitcoin makes up of the overall crypto market cap, has breached the 50% mark.

On June 19 at 6 pm UTC, Bitcoin dominance hit simply above 50% and has since settled to 49.9% on the time of publication, according to knowledge from TradingView.

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Which means Bitcoin alone accounts for half of crypto’s whole $1.1 trillion greenback market capitalization. Bitcoin’s present market capitalization stands at $519 billion, according to knowledge from Coingecko.

Notably, Bitcoin’s market dominance has surged by greater than 10.5% since Nov. 27, 2022, a rise pushed largely by traders seeking to the flagship crypto asset as a secure haven within the wake of the FTX crisis and amid mounting regulatory scrutiny of crypto belongings in america.

Bitcoin market dominance over the past 4 days. Supply: TradingView.

Whereas Bitcoin dominance elevated considerably over the past eight months, Ether’s (ETH) market dominance has been holding regular across the 20% mark for the higher a part of a 12 months. At the moment, the mixed worth of Bitcoin and Ether now accounts for roughly 70% of the whole crypto market.

MicroStrategy co-founder and outspoken Bitcoin bull Michael Saylor believes that Bitcoin’s market dominance will high 80% within the coming years, as growing regulatory stress from the Securities and Alternate Fee causes stablecoins and the majority of other crypto assets to “go away.”

“Your entire trade is destined to be rationalized right down to a Bitcoin-focused trade, with perhaps half a dozen to a dozen different Proof of Work tokens.”

Moreover, Saylor blamed the shortage of any “mega institutional cash” getting into the crypto area on the “confusion and nervousness” introduced concerning the by the 25,000 different cryptocurrencies which have positioned themselves as options to Bitcoin.

Associated: Why Cathie Wood is bullish on Coinbase stock and believes Bitcoin will reach $1 million

“Bitcoin is the universally, globally-acknowledged digital commodity on this trade,” Saylor added, making a nod to the truth that Bitcoin is the one cryptocurrency SEC Chair Gary Gensler has labeled a commodity. The SEC has now declared a total of 68 cryptocurrencies to be securities.

Bitcoin is at present altering palms for $26,746 a rise of 1.5% within the final 24 hours, according to knowledge from Cointelegraph Worth Index. The worth of Bitcoin has grown greater than 3% over the course of the final week regardless of “worry” within the crypto market reaching its highest point in three months.

Crypto analysis agency Santiment additionally points to funding colossus Blackrock’s submitting for a Bitcoin spot ETF as one of many main drivers of Bitcoin’s upwards value motion over the previous few days.

Journal: Bitcoin is on a collision course with ‘Net Zero’ promises