Bitcoin (BTC) Dominance Pushing Towards Previous High of 55%, Last Since December 16, 2018
The world’s largest cryptocurrency has made a good recovery since hitting yearly low in December 2017 at $3,200. Till date, in 2019, Bitcoin has already surged about 40 percent. The leading cryptocurrency surged to the highest point in the last 5 months at above $5,600 up until a few days ago.
Before the Bitfinex Tether fiasco that took the market down, wiping about $16 billion from the entire market cap, the market scenario has been branded as the altcoin season. At that time BTC has been seeing a hike and altcoins were riding even higher with some seeing as high as 700 percent gains. Top altcoins like Binance Coin, Litecoin, Bitcoin Cash, and EOS made significant surge as well.
However, as New York General Attorney released the report of Bitfinex and Tether being involved in covering up a loss of $850 million, the market took a serious hit. As usually happens in the market, altcoins react wildly to every Bitcoin’s move. This is exactly what happened when Bitcoin dropped down below $5,200 from the high of $5,600 and altcoins went into a deeper red.
This led to the BTC dominance taking a hike. In March, Bitcoin dominance had been residing between the range of 45 to 50 percent, for the most part. However, with this carnage Bitcoin was yet again in control of the market.
Bitcoin dominance, at the time of writing, has been at 54.4 percent, as per the data provided by Coinmarketcap. This figure is well above its average between the period of January and April. Referencing to this development crypto investor and trader Josh Rager says:
“Continue to watch BTC dominance, especially if you're in altcoins or want to buy alts. Pushing towards previous high 58% during the Bitcoin yearly low in Dec '18. Currently at 57.6%.”
As Bitcoin dominance rises, other top cryptos start losing their share. Ethereum, the second largest cryptocurrency is barely holding onto its 10 percent share while the market dominance of XRP has come down to just above 7 percent.
This is of importance as, since December 2017, Bitcoin hasn’t managed to achieve 60 percent of market dominance which was the time when BTC hit its all-time high at $20,000.
Meanwhile, this surge in BTC dominance came at the time when Bitcoin fundamentals are also maintaining a good picture. This month, the number of transactions saw a considerable spike as they crossed 50,000. This is only the second time in over a year that this has happened.
However, per the Blockchian.com data, a total of 76,220 unconfirmed transactions are also registered for the first time on April 4 since early January 2018 when the number of unconfirmed transactions surpassed 95,000.