Bitcoin market dominance hits 9-month high as altcoins turn red
Bitcoin market dominance hits 9-month high as altcoins turn red
Bitcoin market dominance has reached a 9-month high as the leading coin continues to make positive gains in financial markets. According to data from CoinMarketCapBitcoin currently has 45% of the total trading volumes in the crypto market.
Factors Affecting Bitcoin Market Dominance
The rise in Bitcoin market dominance is largely attributed to the recent market recovery. At the beginning of the year, BTC had 41% of the total market capitalization, which has increased steadily during the first three months.
Looking at the chart above, BTC dominance rose to 44% on January 28 before declining after the big price correction in February. Since the beginning of March, BTC has made great strides, with the token hitting the $27k mark earlier this week. This bullish trend has also been reflected in the market dominance, which is now around 46% at the time of writing.
Another contributing factor is the recent banking crisis that has engulfed the financial industry, where three banks were closed within days. This resulted in measures from the American central bank against a rescue operation for the closed banks. So far, the Fed has injected more than $300 billion into the financial system.
Related reading: Bitcoin Bullish Signal: NUPL Forms a Golden Cross
The last time the institution made a similar move was in 2008, during the mortgage crisis when it injected $111 billion to save the banks. In addition, the Fed has also increased interest rates by 0.50%, which has caused concern in the financial sector.
It is common for investors to place their funds in alternative financial instruments in times of crisis, and Bitcoin is a great advantage. Investors have converted their holdings to BTC, and several troubled altcoins such as USDC have seen their volumes converted to BTC.
Altcoin in the red in the last 24 hours
The crypto market has experienced a slight price correction in the last 24 hours, with several altcoins in the red. The global market capitalization has fallen by 1.31% during this period to $1.16 trillion amid concerns that we may be in for a slight downturn.
Related reading: Conflux (CFX) token is up 167% in the last week – here’s why
Leading altcoin Ethereum is currently down 1.71% from its monthly high of $1,800 and is trading at $1,788. Binance Coin, Solana, Tron, Polkadot and Dogecoin have fallen by similar percentages during this period.
Nevertheless, the biggest losses come from SingularityNet, The Graph and Stacks, down around 8% in the last 24 hours. Some analysts believe that the small correction is normal during a bullish run, and the coming week could be decisive for the crypto market.
Bitcoin’s positive move has excited key stakeholders, with former Coinbase CTO Balaji Srinivasan suggesting the leading coin will hit the $1 million mark in 90 days. Former Bitmex CEO Arthur Hayes confirms his views with a similar opinion.
Featured image from Unsplash, charts from Tadingview.com
