© Reuters.
The market dominance of (BTC), the leading cryptocurrency, has been on an upward trend, despite its price remaining relatively stable over the past month. As of Tuesday, Bitcoin accounted for more than half of the entire cryptocurrency market with a valuation of nearly $520 billion and a price of $26,690.
This increase in market dominance comes at a time when many alternative cryptocurrencies are either stagnating or declining in value. However, it should be noted that Bitcoin is still about 5% lower than its June peak and 23% below its January 2022 peak.
On Monday, the Bitcoin market dominance rate rose to 50.2%, its strongest level in a month and near a 26-month high of 52% reached at the end of June.
The alpha coin’s market dominance had ranged between nearly 40% and 49% for more than two years before it finally reached the 52% level in June. This was sparked by asset manager BlackRock’s application for a spot BTC exchange-traded fund, which spurred hopes about significant inflows into the asset class.
Investors are currently bracing themselves for a possible drop in Bitcoin’s value in September, a historically tough month for the cryptocurrency. This cautious outlook is reinforced by the rising chances of a global economic downturn and stubbornly high inflation.
However, some analysts believe that Bitcoin could see a major price increase due to an expected influx of new investment. This surge could help Bitcoin sustain its dominance in the highly-stacked crypto market.
Markus Thielen, research head at crypto services provider Matrixport, noted that Bitcoin enjoys more “potential buying pressure” from the ETF listings while altcoins may be on the brink of breaking lower. He cited declining protocol revenues and upcoming token unlocks among risks on the altcoin market.
Macro analyst Noelle Acheson added that Bitcoin would likely benefit from the latest regulatory changes proposed by the New York Department of Financial Services (NYFDS), which include stricter rules to list cryptocurrencies on exchanges while simultaneously green-listing BTC as a digital asset that license holders can list or custody without further regulatory hurdles.
As the cryptocurrency market experiences a significant liquidity shortage, Bitcoin’s resilience and popularity remain evident. Despite a rapid retracement following a 2% increase in value, Bitcoin has demonstrated its propensity to see significant increases during periods of market…
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