Despite Bitcoin’s current price of $26,700, which has remained relatively stable over the past month, its dominance in the cryptocurrency market is steadily increasing. This rise in Bitcoin’s market dominance is seen as a growing concern for the rest of the cryptocurrency sector, media reports said.
Reports indicate that the Bitcoin market dominance rate, which measures the share of the total digital asset market held by the largest cryptocurrency, recently reached 50.2%. This marks its highest level in a month and comes close to the 26-month peak of 52% recorded at the end of June.
Taking a longer-term perspective, Bitcoin’s market dominance had fluctuated within a range of 39% to 49% for more than two years. However, in June, it surged to the 52% level following asset manager BlackRock’s filing for a spot BTC exchange-traded fund, igniting hopes of substantial inflows into Bitcoin.
Analysts believe that Bitcoin is currently benefiting from increased “potential buying pressure” due to ETF listings. In contrast, alternative cryptocurrencies, often referred to as altcoins, are facing potential downward pressure.
They cite factors such as token sales by the bankrupt exchange FTX, declining revenues within the Ethereum protocol, and upcoming token unlocks that allow venture capital investors to sell their tokens as risks facing the altcoin market.
Bitcoin could receive a boost from recent regulatory changes proposed by the New York Department of Financial Services (NYFDS).
These regulatory developments might lead to a further shift of investment into Bitcoin as it solidifies its reputation as the “safe” cryptocurrency asset.
