Bitcoin’s Crypto Market Dominance Hits 3 Month High at 55% as Altcoins Feel Bear Market Pressure
In a year in which every asset is a loser, who are the winners? No, we’re not talking about investors who sold Bitcoin in December 2017, but the assets themselves. Almost all of the cryptos lost at least 80% of their value this year during the bear market, so who won?
The main losers are very clear: altcoins, especially the small ERC20 ones created by Initial Coin Offerings (ICOs) in 2017. Most of them saw their price at 90% of their all-time highs or worse. What may be surprising, due to the frequency in which people affirm that Bitcoin is dead, is that Bitcoin is one of the greatest winners of the bear market.
Market data from CoinMarketCap (CMC) reveals that the dominance of Bitcoin (BTC) in the crypto market has reached 55.38%. This was the highest level in about three months, something that can surely make Bitcoin investors quite happy amidst so much trouble that is happening right now.
By using a dominance rate metric, Coindesk has calculated that the Bitcoin market is worth more than half of the market cap now, something that is not slightly surprising for the people who are intimate with the market. Bitcoin, despite its heavy losses, is still the assets that drive the market up and down.
The token has always maintained the dominance over the crypto market and never lost it in its 10 years of existence, but it already had a lower dominance rate before. For instance, its all-time low was January 13, when BTC was worth only 32%, roughly a third of the entire crypto market.
Mostly because of the crash and the whole crisis that happened soon afterward, the weaker assets were considerably more prone to fall. Some of them failed completely and were even delisted by crypto exchanges for their lack of volume, so it is obvious why Bitcoin’s market cap has increased so much.
The whole market has seen a depreciation of more than 90% of its all-time high record while Bitcoin has not entered the 90% loss mark yet (and there is a good chance that it will not). When we consider the trouble that tokens like Ether (ETH) are having this year, it is easy to understand why Bitcoin thrived despite all the trouble in the market.
BTC has fallen nearly over 80% since its all-time high now but it is clearly the less risky token of the market despite all its faults and failures, so investors are simply going to invest in it instead of doing it to unknown altcoins like they were in 2017. Bitcoin’s dominance keeps only rising. What will happen? Follow our blog to find out.