Bitcoin Takes The Crown: Market Cap Dominance Soars Above 58%, Highest Level Since 2021

Ronaldo Marquez

1 year ago

3 mins read

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Bitcoin (BTC) has again taken center stage in the cryptocurrency market as institutional interest surges. This interest has been spurred by major financial giants such as BlackRock, Fidelity, and Ark Invest, who have applied with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin Exchange Traded Fund (ETF).

According to Coin Metrics, BTC’s market capitalization dominance has reached a new high for 2023, currently at 58%, the highest since April 2021.

Bitcoin Rules The Crypto Kingdom

BTC has been the leading digital asset and has maintained its position as the top cryptocurrency for a long time. Its market cap of $586 billion is significantly higher than the industry’s combined market cap, which stands at $425 billion (excluding stablecoins).

According to Coin Metrics ‘ report, BTC’s dominance fell in the spring of 2021 as traders bid up smaller-cap altcoins, but it never dropped below 40% of the total market.

However, with some newer tokens facing intensified regulatory scrutiny in the US, BTC has pulled ahead in 2023. BTC’s weighting in the CMBI 10, index of the 10 largest cryptocurrencies by market capitalization, is also at a 2-year high of 65%.

Looking at a broader basket of assets, BTC’s 85% return year-to-date outpaces most of the other major digital assets. Per the report, the only two assets with a greater return year-to-date compared to BTC are Bitcoin Cash (BCH) at 102% and Lido (LDO) at 104%.

BTC Dominance Rallying Trend Ahead?

On the other hand, crypto analyst Michael Van de Poppe recently shared some insights regarding the Bitcoin dominance chart. According to Van de Poppe, “the chart looks like it wants to continue rallying,” but there are some key points to remember.

One of the most important takeaways is that in September 2019, BTC tested the 200-week moving average (MA) and exponential moving average (EMA) and encountered resistance. This was 10 months before the Bitcoin halving event in May 2020.

Van de Poppe notes that the current situation is similar to September 2019. BTC is once again testing the 200-week MA and EMA, and whether it can break through this resistance level remains to be seen.

This could be a positive sign for Bitcoin investors, as the halving event was followed by a period of strong price growth for BTC.

Overall, while there are some potential challenges for BTC to overcome in the short term, Van de Poppe’s analysis suggests that the long-term outlook for Bitcoin remains positive.

As of now, Bitcoin trades at $30,100, and it continues to experience a decline in value, representing a 2% drop over the past 24 hours. Additionally, its market dominance, which considers all other cryptocurrencies in the ecosystem, currently stands at 52%. There is a significant contrast between its current dominance and the 72% it achieved in 2021.

Featured image from Unsplash, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

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With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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