- Bitcoin’s dominance rises to over 49%.
- The 24-hour volume drops by more than 40% while the price remains around $28,000.
Bitcoin [BTC] has long held its position as the leading cryptocurrency, but has recently achieved unprecedented dominance. How does this increased dominance compare to the performance of recent months and compared to other cryptocurrencies?
Read Bitcoin (BTC) price prediction 2023-24
Bitcoin’s dominance is increasing
A recent one online discussion drew attention to Bitcoin’s remarkable resurgence in market dominance. This dominance relates to BTC’s market capitalization relative to the total capitalization of all other cryptocurrencies.
As the discussion revealed, BTC’s current dominance has now reached an all-time high.
When examining the historical trajectory of BTC’s dominance CoinMarketCapit became clear that the price had been consistently in this elevated range for a significant period of time before reaching this new peak, marking a high not seen for several months.
According to data from CoinMarketCap, Bitcoin’s dominance currently stands at over 49%, which is close to 50% of the entire cryptocurrency market.
Source: CryptoMarketCap
Additionally, Bitcoin chart analysis revealed a recent decline in trading volume at the time of this discussion. Trading volume has decreased by more than 40% and the market capitalization of the asset has also decreased slightly.
Research into the price development of BTC in light of its increasing dominance
Bitcoin’s significant rise in dominance can largely be attributed to the price increase, especially the sharp spike around October 16.
On that day the price rose by more than 5%, but since then there has been a downward trend. At the time of this report, BTC was trading at around $28,400, down less than 1% in its value.
Source: TradingView
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Moreover, it is worth noting that the Relative Strength Index (RSI) rose above 60, indicating that Bitcoin was in a strong bullish trend.
However, the current RSI position also indicated the possibility of an upcoming price drop for BTC. With this expected price drop, the market capitalization is expected to decline further, leading to a reduction in BTC’s dominance in the cryptocurrency market.