As of August 8, 2018, Bitcoin [BTC] sits at approximately USD$6,328 with a market capitalization of USD$108 billion. When considering its contribution to the crypto sphere, which is also known as the percent of dominance within the market, Bitcoin currently sits at 48.9%.
This might not immediately strike as important, however, a recent post shared by CNBC pointed out that bitcoin’s current dominance percent is similar to that of 2017, just before BTC reached its all-time high of about USD$19,780.
Many might feel a sense of fear for how the crypto market is evolving, as 2018 has been one of the worse by far. However, it turns out that the giant has managed to recover from several lows, especially that of the month of June, where it easily fell below USD$6,000. In the past, investors have argued that such recovery is associated with positive news within the crypto sphere, namely SEC’s classification of BTC as a commodity and their continuing efforts to understand and implement fair regulations as opposed to shutting them down altogether.
During the time in which assumptions surfaced in terms of a potential Bitcoin exchange-traded fund (ETF), green zones for several cryptocurrencies were present, namely that of BTC. Although the ETF discussion has been postponed until September 30, 2018, the fact that we’ve gotten to this point is impressive enough.
Similarly, CNBC believes that the efforts of the Intercontinental Exchange (ICE)’s U.S based futures exchange, Bakkt, could also have sparked interest within the crypto sphere, as the platform will be working alongside several successful businesses such as BCG, Starbucks and Microsoft.
Another reason why BTC might have seen positive movement, could potentially be due to the effects on altcoins. An example shared was that of Japan’s crypto exchange, Coincheck, which lost over $500 million NEM tokens.
Could bitcoin’s growing dominance within the crypto market indicate a possible price hike in the time to come?