- This is the first time we’ve seen this since 2021.
- Capitalization of the main cryptocurrency is $519 billion
Bitcoin dominance has exceeded 50% of the total market capitalization of cryptocurrencies. According to data TradingView, now it has reached 50.04%. The Bitcoin Dominance Index (BTCD) is at its highest level since 2021.
For more information about what domination is, see our special video:
Experts name different reasons for the growth of the bitcoin share. First, its price remains more stable compared to many altcoins. So, last week, many of the top 10 tokens lost more than 20% overnight, and their market capitalization fell sharply. At the same time, BTC lost 4-5% on the “bloody” days on the market. As a result, the relative share of bitcoins in the total cryptocurrency market capitalization has increased.
Also, the relatively stable BTC exchange rate offers investors a certain degree of protection. This leads to the outflow of a large amount of funds from the altcoin markets into bitcoins. Users perceive the main cryptocurrency as a safe haven in a bear market.
Recently, MicroStrategy co-founder Michael Saylor predicted that Bitcoin dominance would exceed 80% in the near future. He believes that due to crypto-repression in the US, stablecoins and many altcoins will leave the market.
Another driver of the growth in the popularity of Bitcoin was the news from Blackrock and Fidelity. These two financial giants are planning to launch a bitcoin ETF.