With a price of $26,700 right now, Bitcoin (BTC) has been stable for the past month. However, as risks for the rest of the cryptocurrency market increase, so has its market dominance.
The market domination rate for Bitcoin, which measures the market share of the biggest cryptocurrency relative to all other digital assets, increased to 50.2% earlier on Monday, which is a 26-month high and the highest level in a month.
In a broader context, bitcoin’s market dominance ranged between 39% and 49% for more than two years before breaking out to the 52% level in June after asset manager BlackRock’s application for a spot BTC exchange-traded fund sparked anticipation about releasing massive inflows into the asset.
BTC benefits more from “potential buying pressure” from the ETF listings, according to Markus Thielen, research head at cryptocurrency services provider Matrixport, who detailed this in an interview on Monday. Meanwhile, altcoins, or alternative cryptocurrencies, may be on the verge of falling lower. FTX’s token sales, diminishing Ethereum protocol income, and future token unlocks, which will enable venture capital investors to sell tokens, were among the threats he mentioned for the altcoin market.
ETH peaked in April, whereas BTC peaked in July thus far this year, according to Thielen. Even ether hasn’t really benefited from all these [ETF] announcements for altcoins.
According to macro analyst Noelle Acheson, bitcoin would probably benefit from the most recent regulatory changes put forth by the New York Department of Financial Services (NYFDS) on Monday. These changes include stricter guidelines for listing cryptocurrencies on exchanges as well as a green listing of BTC as a digital asset that license holders can list or hold without facing additional regulatory restrictions.
As Bitcoin solidifies its position as the “safe” crypto asset, the immediate consequence on the cryptocurrency markets may be increased rotation into BTC, Acheson stated in a newsletter.
