Markets
Bitcoin: dominance falls to 52%
1:00 p.m. ▪ 4 min reading ▪ by Evans S.
Bitcoin just experienced a significant decline in its market dominance, falling to 52%. Is a decisive turning point looming on the horizon? The decline of Bitcoin dominance raises many questions and speculations about the future of the crypto market.
A sudden decline in Bitcoin
Over the past 24 hours, Bitcoin has attempted to recover, but to no avail. The current decline The crypto price has left many BTC without buyers, accumulating in OTC (over-the-counter) reserves.
Over-the-counter transactions are a key indicator of institutional interest, and their current stagnation suggests a growing disinterest in purchasing Bitcoin. This situation could signal increased caution on the part of large investors given market volatility.
Bitcoin’s dominance fell by more than 2% in just 24 hours, from 54% to approximately 52.28%. This rapid decline indicates that, despite Bitcoin losing value, some altcoins managed to perform better, gaining market share.
Currently, The dominance of Bitcoin The market share of cryptocurrency is around 53%, which still represents more than half of the total market capitalization of cryptocurrencies. This dominant position is, however, increasingly challenged by promising alternatives.
The impact on the market
Bitcoin’s market cap stands at over $1.2 trillion, while the total cryptocurrency market cap is around $2.27 trillion. Ethereum (ETH) ranks second, with nearly 18% of the total cap.
Fluctuations in the price of Bitcoin considerably influence the distribution of market capitalization between different cryptocurrencies. A decline in Bitcoin’s dominance could encourage market diversification, pushing investors to explore other digital assets.
According to CryptoQuant, Bitcoin’s OTC reserves have seen a notable increase over the past six weeks, with over 103,000 BTC added, valued at over $6 billion.
This accumulation reflects a significant increase in OTC reserve balances. This indicates a lack of buyers at the moment. This phenomenon could be attributed to the recent drop in the price of Bitcoin. This deters potential buyers and leads to a build-up of reserves.
The increase in OTC reserves highlights the caution of major market participants in the face of price volatility.
This trend suggests a widespread expectation of a market correction or stabilization before reinjecting accumulated reserves.
The decline in Bitcoin’s dominance could mean a reshuffling of the cards in the cryptocurrency market. Altcoins, often considered riskier but potentially more profitable alternatives, could see increased adoption and capitalization.
However, investors large and small will need to navigate this changing landscape with caution and insight. The future of Bitcoin and altcoins remains uncertain, but opportunities for growth and innovation are plentiful. In the meantime, 80% of crypto companies ignore MICA regulations.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped researching the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.