Bitcoin has long been at the forefront of the crypto industry; and it seems with the market’s most recent move downwards, Bitcoin’s dominance over the rest of the market may continue, or at least for a little while longer.
Bitcoin Dominance Surges Amidst Crypto Downtrend
The crypto market dropped by a collective 7% in the past 24 hours, but Bitcoin has been doing better than others. At the time of writing, Bitcoin has currently posted a loss of 5%, while cryptos like Ethereum, XRP, and Litecoin have fallen by over double that percentage figure. However, the three aforementioned altcoins aren’t alone in their double-digit decline, with dozens, if not hundreds of altcoins seeing 24-hour declines that eclipse 10%.
This widespread capitulation in altcoins has led Bitcoin’s dominance figure to surpass 50% for the first time since December’s BTC boom.
But, this was not an overnight occurrence, with altcoins seeing a dominance pullback for the better part of three months, rising from a May low of ~36% to 50% as we stand today. Today’s market drop only helped this figure move over the ever so important 50% level.
While Bitcoin’s relative strength surprised more than a few investors, to an assortment of experienced traders, this comparable astronomical rise was to be expected.
As reported by NewsBTC earlier this week, Tom Lee, the head of research at Fundstrat, explained why BTC has been seeing a dominance run. Speaking to CNBC viewers, the Fundstrat executive highlighted Bitcoin’s history from a market perspective, drawing attention to the asset’s historical command over the industry, as it held 80% of crypto’s market share for just shy of 8 years.
Lee went on to draw attention to last year’s altcoin upswing, where ICOs and overly-ambitious projects became a crypto investor’s preferred investment vehicle. This resulted in Bitcoin’s dominance falling to an all-time low at 37%, with many altcoin proponents expecting Bitcoin to further recede into obscurity. But against all odds, altcoins recently saw a substantial pullback as the Bitcoin permabull explained