The Dominance of Bitcoin in the Crypto Market Continues to Grow
The dominance of Bitcoin in the cryptocurrency market is at its highest level this year, while altcoins continue to struggle. Altcoins, which are alternative cryptocurrencies to Bitcoin, have not been able to recover from their significant losses during the current market cycle.
Bitcoin Dominance Reaches Over 50%
According to TradingView, Bitcoin dominance has reached 52.17%, its highest level in 2023. This marks a steady increase from its market share of 42% at the beginning of the year. In late November, BTC dominance fell below 40% but has since rebounded.
Experts predict that this trend may continue as the halving approaches and Bitcoin continues to attract attention and liquidity. However, some analysts suggest that there may be a final flush-out before further growth.
Altcoins Suffer as Bitcoin Dominance Grows
The rise in Bitcoin dominance comes at the expense of altcoins, with Ethereum hitting a seven-month low and other altcoins following suit. Many altcoins peaked in May 2021 and have yet to recover from the subsequent bear market.
MN Trading CEO Michaël van de Poppe believes that altcoins are currently in the last part of the bear cycle and that sentiment towards them has diminished.
Crypto Market Outlook
In the short term, the outlook for Bitcoin and altcoins remains bleak. While Bitcoin has shown some stability and gained 5.4% over the past week, altcoins continue to experience losses. Ethereum, Binance’s BNB, and XRP have all seen declines.
Altcoins such as Polygon, Litecoin, Shiba Inu, and Avalanche have experienced even larger losses.
Hot Take: Altcoins Struggle to Catch Up to Bitcoin
Despite the current bull market in cryptocurrencies, altcoins are still lagging behind Bitcoin. With most altcoins down 80-90% from their peak prices, it seems that Bitcoin’s dominance will continue for the foreseeable future. While some analysts believe that altcoins are nearing the end of their bear cycle, there is still uncertainty surrounding their recovery. As investors and traders navigate the volatile crypto market, it is clear that Bitcoin remains the driving force.
By
By
By
By
By
By