Bitcoin Dominance Surpasses 50% Despite Market Turbulence
Bitcoin continues to reign as the king of cryptocurrencies, with its dominance typically ranging between 44% to 53% over the past year.
Bitcoin Dominance Surpasses 50% Despite Market Turbulence. Photo: TheStreet
Bitcoin Dominance, a measure of Bitcoin's market capitalization compared to the entire cryptocurrency market, has recently risen from below 50% to around 52.92% in the past few days.
Bitcoin remains the largest cryptocurrency in the market and has maintained its dominance over the past year. Bitcoin Dominance typically fluctuates within the range of 44% to 53%, beginning to rise since last summer amid excitement surrounding the formation of Spot ETFs.
Bitcoin's market dominance reached 52.86% in April, marking its highest level in three years. This notable growth stems not only from the ETF excitement but also from conflicts in the Middle East affecting other assets.
Source: CoinGecko
However, despite Bitcoin's continued superiority compared to late 2021 to early 2023, its role began to diminish with the rise of meme coins, which have taken the spotlight in recent months. Additionally, Ethereum had its moment in the sun with the SEC's approval of a Spot ETF on May 23. Nevertheless, the order is now shifting back.
In terms of price, Bitcoin has struggled in recent days, plunging by 5.3% this week after the Fed predicted only one interest rate cut in 2024. Looking broadly, most altcoins are in the "red zone," faring worse than Bitcoin. Tokens like FLOKI, STRK, IMX, and FIL have all seen double-digit declines over the past 7 days.
Source: Coin360
Overall, akin to its resilience during the Middle East conflict, Bitcoin continues to preserve its position amidst the downturn affecting risky assets. While all cryptocurrencies fall under the category of risky assets, Bitcoin is increasingly proving to be a safe haven.
Nevertheless, Bitcoin inherently carries less risk compared to many other currencies, which are yet to receive recognition from regulatory bodies and institutions.
