Bitcoin Dominance Crossed 50% Mark for the First Time in Two Years
The dominance of Bitcoin (BTC), which indicates the proportion of Bitcoin’s market capitalization compared to the overall cryptocurrency market, has surpassed 50%.
According to data from TradingView, Bitcoin dominance reached slightly above 50% at 6 pm UTC on June 19th and has since stabilized at 49.9% at the time of this publication.
Bitcoin’s market capitalization of $519 billion makes up 50% of the total $1.1 trillion market capitalization of the cryptocurrency market, as reported by Coingecko.
Bitcoin’s market dominance has experienced a significant rise of over 10.5% since November 27, 2022. This increase can be attributed mainly to investors seeking Bitcoin as a secure investment option following the FTX crisis and the increasing regulatory scrutiny of cryptocurrencies in the United States.
Over the past eight months, Bitcoin’s dominance has seen a notable rise, while Ether’s market dominance has remained relatively stable at approximately 20% for almost a year. Currently, the combined value of Bitcoin and Ether represents around 70% of the total cryptocurrency market.
Michael Saylor, the co-founder of MicroStrategy and a prominent advocate of Bitcoin, predicts that Bitcoin’s market dominance will exceed 80% in the near future. He believes that growing regulatory scrutiny from the Securities and Exchange Commission (SEC) will lead to the decline of stablecoins and most other cryptocurrencies.
Saylor attributed the absence of substantial institutional investment in the cryptocurrency market to the uncertainty and unease caused by the existence of 25,000 other cryptocurrencies that present themselves as viable alternatives to Bitcoin.
Saylor emphasized that Bitcoin holds a unique position as the universally recognized digital commodity in the industry. He acknowledged that SEC Chair Gary Gensler has designated Bitcoin as the only cryptocurrency classified as a commodity, while the SEC has categorized 68 other cryptocurrencies as securities.
According to the Cointelegraph Price Index, Bitcoin is currently being traded at $26,746, reflecting a 1.5% increase in the past 24 hours. Despite the prevailing “fear” in the cryptocurrency market, the value of Bitcoin has risen by over 3% in the last week, marking its highest growth in three months.
The recent surge in Bitcoin’s price has been attributed to various factors, including the filing by Blackrock, a renowned investment company, for a Bitcoin spot ETF, as highlighted by crypto research firm Santiment.
