The dominance of the Bitcoin crypto market drops below 40%
December 29, 2021
December 29, 2021
Bitcoin’s market dominance has decreased, with the cryptocurrency’s market share falling below 40% in the past few days. Those numbers are close to the record low of 36.7 percent seen in January 2018, according to TradingView statistics. The market dominance of Bitcoin (BTC) is defined as the correlation between the market capitalization of Bitcoin and the total market capitalization of the cryptocurrency.
This isn’t the first time in 2021 that Numero Uno Crypto’s influence has waned. In May, Bitcoin had fallen to 40.3 percent of total crypto asset valuation, according to CoinMarketCap, and was about to hit that level again in September. According to the Bitcoin cynic and Europac chairman Peter Schiff, the scenario suggests that Bitcoin “continues to lose its first mover market advantage”.
According to a report released by TradingPlatforms on the first day of trading this week, the dates could mark the start of an imminent one “Old season.” Over the past seven years, the dominance of altcoins in the market has increased threefold, from 21% in 2014 to almost 60% this month. The market dominance of Ether (ETH) remains at over 20% with a total market capitalization of around $ 500 billion. In the past year, the market dominance of ETH has doubled from 10% to 20%.
With over 16,000 alternative cryptos to choose from, Bitcoin’s market dominance is below 40% for the first time since June 2018. With an unlimited supply of easy-to-create cryptos with practically identical properties, #Bitcoin is losing its first-mover competitive advantage.
– Peter Schiff (@PeterSchiff) December 28, 2021
Altcoin Sherpa, a cryptocurrency expert, said last Friday that the “Old season” According to a tweet, it’s been going for a whole year. A graph depicting BTC’s market dominance was used to support its claim that the bearish trend is likely. It remains to be seen how much institutional spending will contribute to setting an upper limit on the dominance indicator.
#Altcoins: Mini-Thread here on ‘whom #Altseason’. The old season lasts a whole year, you just didn’t notice it. Here is the #bitcoin dominance chart – you can see alts have been thriving since January 2021. $ BTC $ ETH pic.twitter.com/c2w1PjHrqV
– Altcoin Sherpa (@AltcoinSherpa) December 23, 2021
Noelle Acheson, the head of market research at Genesis Trading, said in an interview with CNBC that she thinks there is “Clear signals” that institutional cryptocurrency investment growth would accelerate over the next year. For the past 12 months she said “It was amazing to see the growth in institutional investments in the cryptocurrency space.”
According to experts at global banking giant JPMorgan, the rise of Bitcoin was driven by growing demand from institutional investors. That statement was made two months ago. It has been said by the authors that “Institutional investors seem to be flocking to Bitcoin, perhaps because it’s a stronger hedge against inflation than yellow metal.”
Although BTC’s short-term liquidity has declined 32%, long-term investors increased their holdings by 16% in the first half of 2021, according to statistics from Glassnode’s on-chain data archive.
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