Bitcoin price crossed the $30,000 threshold, while a key indicator of Bitcoin (BTC) dominance - reached its highest level in the past two years. The BTC.D chart showing Bitcoin’s share of the total cryptocurrency market value is currently above the 52% threshold. Judging from current data, the Bitcoin dominance rate (BTC.D) reached 52.72% on October 21, reaching the level in April 2021.
Bitcoin dominance increases significantly
BTC.D started the year with gains of 38%, reaching 52.72% on October 21, reaching its highest level since April 2021. The rise in BTC.D comes against the backdrop of an 81% rise in Bitcoin prices since the start of the year. This year, despite occasional interruptions.
This surge in dominance can be attributed to a year-long rally that has seen Bitcoin’s price soar 81% since the start of the year.
The increase in dominance reflects that the cryptocurrency “remains strong in current market conditions and has actually performed well for much of the week. Meanwhile, Bitcoin appears to be closer than ever to receiving spot ETF approval , and in a sense can serve as an ideological hedge against uncertainty on the world stage, helping it regain more dominance in the cryptocurrency space.
Impact of growing Bitcoin dominance on altcoins
Bitcoin dominance, or in other words, Bitcoin dominance, represents Bitcoin’s share of the total cryptocurrency market capitalization. This ratio shows Bitcoin’s dominance compared to altcoins. Bitcoin was first introduced to the market in 2009 as the first cryptocurrency and is considered a pioneer in the world of cryptocurrencies. As a result, Bitcoin’s market capitalization often accounts for a large portion of the total altcoin market capitalization.
Bitcoin dominance is often expressed as a percentage (%). For example, if Bitcoin dominance is 60%, it means that Bitcoin’s market capitalization accounts for 60% of the total cryptocurrency market capitalization. This ratio provides information about the balance and dynamics of the cryptocurrency market.
Bitcoin dominance rate is considered a useful indicator for understanding the overall health and trends of the cryptocurrency market. For example, the decline in Bitcoin dominance indicates that altcoins are receiving more attention and investors are diversifying their portfolios. Conversely, increased Bitcoin dominance may indicate that investors are increasing their confidence in Bitcoin and allocating more resources to it.
However, Bitcoin’s dominance ratio alone does not explain all dynamics in the cryptocurrency market. The cryptocurrency market is constantly changing, and many different factors can influence Bitcoin’s dominance ratio. Therefore, investors and analysts utilize multiple indicators and carefully analyze the market to understand the cryptocurrency market.
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