Bitcoin Dominance Hits Highest Level in a Year, Altcoins Bleed
Last Updated on 6 November 2023 by CryptoTips.eu
Many factors have affected the crypto market in the last few days, especially the crackdown on crypto exchanges in the US. The market seems to have recovered from the effect, and is back on track but there are other forces at play.
As of Saturday 10 June, bitcoin’s dominance rose sharply to 47.5%, the highest in the last year. After bitcoin, Ethereum is holding 20% of the market, making over 67% of the market dominance accounted for by the top two cryptocurrencies.
While this may be good news for holders of the two cryptocurrencies, it isn’t much good for those holding other altcoins. Among the top 20 crypto assets, many have experienced major dips, causing the market to bleed profusely.
BNB, ADA, TRX, SOL, MATIC, DOGE, LTC, DOT, AVAX, SHIB, and ATOM are among the biggest losers, experiencing double digit dips. This is usually the effect of bitcoin’s dominance on the market.
The dominance is however not close to the 60% it usually claims in the last few years. The trend for the next few days will determine if bitcoin continues with its dominance which will cause altcoins to bleed more, or if it will slow down and let altcoins have a breather.
Meanwhile, the regulatory climate around the world isn’t helping the crypto industry to grow, and with the SEC in the US calling many altcoins securities, it may turn out bad for such assets. Examples are ADA, MATIC, among others, which trading platforms like Robinhood have rushed to delist.
If this trend continues, worse days may still be ahead for these crypto assets, which means that bitcoin’s dominance could grow since it is one asset the SEC hasn’t referred to as a security yet. At the time of writing, some of the altcoins have made a come back and some of the top ten are in the green.
