Last week, Bitcoin’s (BTC.D) dominance reached 49.2% for the first time since April 2021. As investors continue to move away from embattled altcoins, cryptocurrency exchanges have experienced a surge in demand for Bitcoin. As the price of BTC gains momentum.
On June 19th at 6 p. m. UTC, Bitcoin’s dominance reached just over 50% and has since settled at 49.9% at the time of publication, according to TradingView data.
Bitcoin’s (BTC) dominance, the measure of how much Bitcoin composes the crypto market’s entire capitalization, has surpassed the 50% mark.
According to Coingecko data, Bitcoin’s precise market capitalization is $519 billion, this means that Bitcoin alone accounts for half of the entire cryptocurrency market capitalization of $1.1 trillion.
Remarkably, Bitcoin’s market dominance has increased by more than 10.5% since Nov. 27th, 2022, an increase was driven in large part by investors seeking the flagship crypto asset as a safe haven in the wake of the FTX disaster and amid increasing regulatory scrutiny of cryptoassets in the United States.
A steeply rise in BTC’s dominance indicates a shift in market sentiment and capital away from altcoins. BTC gained the market as investors become less interested in altcoins.
Bitcoin Market Dominance over the Past 4 Days
While Bitcoin’s dominance increased significantly over the past eight months, Ether’s (ETH) market dominance has remained steady at around 20% for most of the year. Currently, the combined value of Bitcoin and Ether now accounts for approximately 70% of the entire cryptomarket.
Michael Saylor MicroStrategy co-founder and Bitcoin bull believes that Bitcoin’s market dominance will exceed 80% in the next few years as increasing regulatory pressure from the Securities and Exchange Commission causes stable coins and most other cryptoassets to “disappear.”
The whole industry is destined to streamline into a Bitcoin-centric industry, with maybe half a dozen or a dozen other proof-of-work tokens.
In addition, Saylor blamed the lack of “institutional mega-money” entering the crypto space on the “confusion and anxiety” caused by the 25,000 other cryptocurrencies that have positioned themselves as alternatives to Bitcoin.
Saylor added that Bitcoin is the universally recognized global electronic commodity in this industry, making a mark of the fact that Bitcoin is the only cryptocurrency that SEC Chairman Gary Gensler has labeled a commodity. The SEC has now declared a full 68 cryptocurrencies as securities.
Amid increased volatility and uncertainty in altcoin markets, cryptocurrency investors reallocated capital to seek refuge in Bitcoin’s (BTC) censor-resistant qualities.
Bitcoin is currently changing hands for $26 746, up 1.5% in the last 24 hours, according to data from the Blockchain News price index. Bitcoin’s value has risen more than 3% over the course of the last week despite “fear” in the cryptomarket of reaching its highest point in three months.
Therefore, BTC holders can expect further price increases in the coming weeks.
Crypto-research firm Santiment also points to investment colossus Blackrock’s filing for a Bitcoin commercial ETF as one of the main drivers of Bitcoin’s bullish price action in recent days.
By Marina Meza
