With a market valuation of nearly $520 billion and a current price of $26,690, Bitcoin is back in the spotlight. It now accounts for more than half of the entire cryptocurrency market.
This turning point is important because it occurs at a time when many alternative cryptocurrencies are stagnating or declining. However, it is worth noting that despite the recent gains, Bitcoin is still nearly 5% below its June high and 23% below its January 2022 high.
Looking at the broader market, Alphacoin’s market dominance has hovered between nearly 40% and 49% for more than two years, finally reaching a level of 52% in June, when asset manager BlackRock (BlackRock)’s application to establish a spot BTC exchange-traded fund has sparked heated discussions. on expectations of unleashing massive inflows into the asset class.
Bitcoin may be in an unstable crypto environment
Whale interest in Bitcoin is also increasing. The number of addresses holding large amounts of cryptocurrency hit a new high. This trend can have both positive and negative market impacts.
BTC’s “Dominance” ratio is an important cryptocurrency metric that assesses its strength by comparing its market cap to that of the entire cryptocurrency market. At the beginning of 2022, Bitcoin’s market share exceeded 50%, but it declined over the summer as altcoins such as NFTs and DeFi grew in value.
Dominance is important because it captures changes in market value, which can occur quickly due to changes in price or volume. It shows how cryptocurrency investors are responding to current events and shows whether BTC is losing ground to stablecoins or NFT tokens.
BTCUSD approaching the key $27K territory today. Chart: TradingView.com
The cryptocurrency market is currently experiencing a severe liquidity shortage as Bitcoin’s lack of an underlying upward trend continues to disappoint investors. Last night, the top cryptocurrency quickly retraced after rising 2% in value as it failed to maintain support at the $26,000 level.
stay resilient and popular
Still, Bitcoin has shown a tendency to surge higher during market downturns. It remains the leading and most recognized digital currency.
Meanwhile, investors are bracing for a possible fall in Bitcoin’s value in September, a historically difficult month for the cryptocurrency. The cautious outlook is reinforced by the rising likelihood of a global recession and stubbornly high inflation.
However, some analysts believe that Bitcoin prices could surge due to the expected influx of new investment, often referred to as a bull rally. This surge could help Bitcoin maintain its dominance in the highly dense cryptocurrency market.
Featured image from live Bitcoin news