Bitcoin Dominance Hits 50% As Altcoins See 2018 Lows
Bitcoin dominance of the total cryptocurrency market cap has hit 50 percent — a level not seen since the bull run of December 2017. However, as BTC surpasses that 50 percent point once again, the market itself is hitting all-year lows.
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Bitcoin Crosses Psychological Dominance Level
For the first time in 2018, bitcoin’s market cap is slightly higher than that of the rest of the crypto market combined — sitting at 50.5 percent, according to Coinmarketcap data. At press time, bitcoin’s market capitalization sits at just over $100 billion USD.
Bitcoin’s dominance index climbed even as the cryptocurrency market has lost over 12 percent of its value in only the past week. The leading cryptocurrency shed $400 in a single day and is changing hands at just over $6,000.
The rise in bitcoin’s dominance comes at a time when the United States securities regulator — the Securities and Exchange Commission (SEC) postponed its final decision on a proposed bitcoin exchange-traded fund (ETF) to September 30th at the earliest.
Rhett Creighton, the creator of ZClassic, tweeted:
— Rhett Creighton (@HeyRhett) August 11, 2018
Bitcoin’s supremacy indicates its surge in demand compared to altcoins. The index shift was sparked by many altcoins facing heavy losses as investors called it quits on altcoins, citing the risks involved in holding them. Many altcoins are yet to prove their purpose. The rise in bitcoin’s dominance could also signal the end of ICOs and centralized tokens.
Bitcoin Dominance Coincides With Institutional Interest, Altcoin 2018 Lows
The institutional capital entering the crypto space signifies the appetite for bitcoin. Recently, Blockchain Ltd. CEO Peter Smith was of the opinion that conventional investors are more likely to channel their investments toward bitcoin than altcoins. Smith also stated that bitcoin would experience positive price consolidation in the coming quarter due to rising regulatory clarity:
“I think we are seeing another slow consolidation in the market now, and we are likely to see a moderate but positive consolidation over the next quarter.”
Although bitcoin dominance is on the rise and has increased substantially over the past few months, the overall crypto market cap has descended to levels not seen since mid-November last year.
Will the bitcoin dominance rally continue? Share your views in the comments section below.
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