“Bitcoin Regains its Throne: Bitcoin Dominance Surges to a 2-Year High, Signaling a Promising Era for the King of Cryptocurrencies”
Bitcoin Dominance Reaches Two-Year High Amidst Market Resilience
The dominance of Bitcoin in the digital asset market has recently reached a two-year high, indicating its resilience to wider market forces such as concerns over inflation and geopolitical risks. According to data from The Block, Bitcoin dominance now stands at 49.58% of the market, the highest level since April 2021. Other sources, like TradingView, show dominance nearing 53%.
Bitcoin dominance is a metric that measures Bitcoin’s market capitalization as a percentage of the total cryptocurrency market capitalization. It is used to gauge market sentiment and the relative performance of altcoins compared to Bitcoin.
In addition to the rise in Bitcoin dominance, spot volumes across crypto exchanges have increased as Bitcoin approaches a crucial resistance level of $31,000. At the time of writing, Bitcoin was trading at $30,926, with a 2.16% gain over the last 24 hours.
Experts believe that Bitcoin dominance will continue to rise for the rest of the year. Benjamin Cowen, founder of ITC, stated that BTC dominance has not had a weekly close below its bull market support band in 2023, indicating a strong market sentiment for Bitcoin.
Glassnode’s researchers have also found that the current market structure resembles the recovery phase from major bear markets, similar to the situations in 2016 and 2019. The wider market and the Long-Term Holder NUPL are currently positive, indicating that the average investor is in profit.
Overall, Bitcoin’s dominance in the digital asset market remains strong, suggesting its resilience amidst market uncertainties. As Bitcoin continues to perform well, the cryptocurrency market is closely watching its next moves and its potential impact on altcoins.