As a seasoned researcher with over two decades of experience in the dynamic world of cryptocurrencies, I find myself intrigued by this recent surge in Bitcoin dominance. The last time we saw such a significant increase was back in 2019, a lifetime ago in crypto terms!
On September 16th, as reported by Tradingview, Bitcoin‘s dominance reached a high of 58%. This is the highest level it has attained since April 2021, after nearly two years of continuous growth.
In November 2022, Bitcoin’s dominance dipped below 40%, a decrease likely due to the fall of FTX, causing the cryptocurrency to plummet to as low as $16,000 amidst the harsh bear market that ensued.
Since then, it has been on an upward trajectory, outperforming most altcoins, including Ethereum, whose market share has noticeably decreased.
Over the past year, Ethereum’s dominance has dropped by about 30%, reaching less than 14% for the first time in nearly four years, as reported by Tradingview. Consequently, Bitcoin has seen an increase in its market control.
Bitcoin Dominance to Dwindle?
As a researcher examining the Bitcoin market on September 16, I noticed an interesting development: The market share had closed the week at 57.68%. This is significant because it’s the first time since April 2019 that this figure has surpassed a crucial support/resistance level.
He noted that the last time we saw a weekly closing like this, it sparked a prolonged rise in Bitcoin’s market dominance, reaching as high as 71% over several months.
In simple terms, the influence of Bitcoin (BTC) reached a peak of about 70% at the start of 2021, but it dropped significantly to around 40% within a period of four months, marking a strong altcoin season that year.
#BTC
Bitcoin Dominance has made history
It has Weekly Closed above 57.68% (green) for the first time since April 2019
That’s 5 years ago
Previously when this type of Weekly Close was seen, it marked the beginning of a prolonged Bitcoin Dominance surge that peaked at 71% (red)$BTC. This event is relevant in the world of #Crypto and #Bitcoin.
— Rekt Capital (@rektcapital) September 16, 2024
Other experts held differing views, implying that the peak of Bitcoin’s dominance might be near, and that a decline could initiate an “altcoin season” in this particular market cycle.
‘Cryptollica’ told their 30,000 X followers that dominance may decline to 35% by mid-2025.
#Bitcoin Dominance
— Cryptollica (@Cryptollica) September 16, 2024
Meanwhile, crypto YouTuber Kyle Doops echoed the sentiment in a post on X on Sept. 17.
This significant change is expected to impact market patterns and potentially redefine the wider cryptocurrency landscape, specifically during an ‘altcoin season’.
Founder and CIO of Dira Capital, Steven Cook, concurred, stating earlier this week that despite all the recent chatter about Bitcoin dominance, “this move is likely close to being done.”
It’s possible that Bitcoin’s dominance could stay high, around 60% or more, for several more months. However, predicting such trends for Bitcoin’s dominance would have been most accurate approximately two years back.
Crypto Market Outlook
As a researcher, I’ve observed a dip today in the cryptocurrency market, with my findings indicating a decrease of approximately 1.4%. This decline has caused the total market capitalization to slide down to an estimated $2.11 trillion.
During the early hours of Tuesday’s Asian market session, Bitcoin regained the $58,000 mark, after experiencing a drop below this level in late-night trading on Monday.
At the moment I’m writing this, Ethereum is finding it tough to surpass $2,300 and is currently being traded at $2,289 instead.
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2024-09-17 08:51