Bitcoin (BTC) has been up for a month – its current price of $26,700 is virtually flat from 30 days ago – but its market dominance has increased as risks increase for the rest of the bitcoin sector. cryptocurrencies.
The market dominance rate of Bitcoin, which represents the largest cryptocurrency share in the total digital asset market, reached 50.2% earlier Monday, its highest level in a month and close to a 26-month high of 52% reached at the end of June.
From a broader perspective, Bitcoin’s market dominance was in a range between 39% and 49% for over two years before reaching that 52% level in June after the manager d BlackRock assets filed a BTC spot exchange-traded fund. releasing massive inflows into the asset.
Markus Thielen, head of research at crypto service provider Matrixport, explained in an interview with CoinDeskTV on Monday that BTC is seeing more “potential buying pressure” from ETF listings, while Alternative cryptocurrencies – also known as altcoins – could be about to fall. He highlighted failed token sales from the FTX exchange, falling revenue from the Ethereum protocol and the upcoming token unlock – which allows venture capitalists to sell tokens – among risks in the crypto market. altcoin.
“BTC peaked so far this year in July, while ETH peaked in April,” Thielen said. “All these [ETF] the announcements didn’t really benefit altcoins, not even ether.
Macro analyst Noelle Acheson noted that Bitcoin would likely benefit from the latest regulatory changes proposed Monday by the New York Department of Financial Services (NYFDS), including stricter rules for listing cryptocurrencies on exchanges while simultaneously listing BTC as a digital asset for which licensees can be listed or held without further regulatory hurdles.
“The immediate impact on crypto markets could be a further rotation into BTC as it cements its status as a ‘safe’ crypto asset,” Acheson wrote in a newsletter.