Markets
Bitcoin Dominance Hits Record High Amid Market Selloff
Dan Burgin
Are Crypto Investors Ready for the Altcoin Bull Run?
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Bitcoin Market Cap Dominance Hits 54.5, According to data provided by TradingView. This is the highest value of this metric for Bitcoin since July 2021.
The dominance of a cryptocurrency is a ratio between its market capitalization and the combined market capitalization of cryptocurrencies. It is calculated by dividing the market capitalization of the cryptocurrency by the combined market capitalization of the top 125 cryptocurrencies and multiplying it by 100.
The fact that Bitcoin has reached a three-year high in dominance could indicate a potential bullish trend for altcoins.
Source: Cryptography Titan
Glassnode co-founders support this view based on market risk, which indicates that investors are placing their bets on riskier assets that are likely to generate higher returns.
Analysts noted that the tech-heavy Nasdaq index was down 2% on Thursday. By comparison, the iShares Russell 2000 ETF (IWM), an index of small-cap stocks, was up more than 3%.
This indicates that investors are betting on riskier assets, which are likely to generate higher returns.
About the Author
Dan Burgin
Dan is a news writer and author with 12 years of experience in finance and emerging technologies, with a specialization in crypto. Covering a wide range of topics, from fintech startups to AI, he provides an in-depth look at the current state of the cryptocurrency market, as well as insights into its potential for future disruption.