Bitcoin (BTC) Dominance Rises 50.9% as Alts Slide

For the first time since December 2017, Bitcoin dominance crosses the 50% mark.

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Bitcoin has been the leading cryptocurrency since it was created and everything points to the fact that it would continue in that fashion.

For the first time since December 2017, Bitcoin dominance crosses the 50% mark.

What does it mean?

The Bitcoin dominance reaching 50.7% means that half of the entire cryptocurrency market cap is in Bitcoin.

At the moment, the entire cryptocurrency market cap stands at, $214 billion, with Bitcoin having a market cap of $108 billion.

This means that over 50% of the entire cryptocurrency market is made up of Bitcoin. The increase in Bitcoin dominance comes at a time when its price alongside other cryptocurrencies has been on a decline.

The rise in Bitcoin dominance though wasn’t an overnight achievement. Altcoins have experienced a torrid time over the past three months, which has allowed Bitcoin dominance to rise from 36% to 50% as it stands today.

The market drop has helped Bitcoin cross that magical 50% level.

At the time of writing this, Bitcoin price is trading above the $6,300 mark, which means that it has lost more than 60% of its value since the start of the year.

What to expect from the increase in dominance

If history is anything to go by, an increase in Bitcoin dominance hasn’t been good for the price of the cryptocurrency.

The last time Bitcoin dominance was above 50% was on 19th December, where it controlled 50.54% of the market.

This represented BTC’s high point where the price nearly reached the $20,000 mark. The next day, the Bitcoin dominance dropped to 47.2%, with BTC price also dropping.

In this year, high Bitcoin dominance was experienced in April, when it reached 45.5%. The price of the cryptocurrency also dropped while Bitcoin dominance increases.

However, market analysts and experts such as Tom Lee, Mike Novogratz, and Peter Smith believe that the increase in Bitcoin dominance means that the market is getting ready for a turnaround.

They believe that with Bitcoin controlling more than half of the cryptocurrency market, it is perfectly placed to embark on a bullish run very soon.

Lee and Novogratz believe that dominance will continue to rise as the market reacts to the recent good news. U.S SEC declaring that Bitcoin is a commodity, ICE’s announcement and a potential for a (Bitcoin) ETF, amongst other.

All these have helped convince investors that Bitcoin is the best amongst them all.

Altcoins price plunging lower compared to Bitcoin

Even though the Bitcoin price has taken a hit during this current bear market, altcoins have been the biggest losers.

Altcoins witnessed an upswing last year, where ICOs and overly-ambitious projects became a crypto investor’s preferred investment vehicle.

This led to Bitcoin dominance falling. However, with the Bitcoin dominance now on the rise, it means that funds are flowing out of altcoins into Bitcoin as investors trust the leading cryptocurrency in this time of uncertainties.

A lot of traders and investors are staying away from altcoins due to the short-term unpredictability of the cryptocurrency market which has led to the massive drop in altcoin prices.

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