Bitcoin’s Crypto Market Dominance Declines Below 40% December 29, 2021 December 29, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsDecember 29, 2021 by Kelly Cromley

Bitcoin’s Crypto Market Dominance Declines Below 40%

Bitcoin’s market dominance has been on a decline, with the cryptocurrency’s share of the market dropping under 40% in the past few days. Those figures almost match the record low of 36.7% percent recorded in January 2018, as per TradingView statistics. The market dominance of Bitcoin (BTC) is defined as the correlation between Bitcoin’s market capitalization and the entire cryptocurrency market capitalization.

This isn’t the initial time in 2021 that the numero uno crypto’s influence has waned. Back in May,Bitcoin had fallen to 40.3 percent of the total crypto asset valuation, according to CoinMarketCap, and that it was on the verge of reaching that level once again in September. According to Bitcoin cynic and Europac chairman Peter Schiff, the scenario is suggestive that Bitcoin is “continuing to lose its first-mover market edge.”

According to a report issued on the first trading day of this week by TradingPlatforms, the data might herald the start of an upcoming “alt season.” In the previous seven years, the dominance of altcoins on the market has risen by 3x, from 21% in 2014 to almost 60% this month. Ether’s (ETH) market domination remains over 20%, with a total market capitalization of around $500 billion. During last year, ETH’s market dominance has doubled to 20%, from 10%.

Altcoin Sherpa, a cryptocurrency expert, opined last Friday that the “alt season” has already been going for a whole year, according to a tweet. A graphic depicting BTC’s market dominance was used to support their claim that the declining trend is likely. It needs to be seen how much institutional spending will contribute to the establishment of a ceiling in the dominance indicator.

Noelle Acheson, the head of market analytics at Genesis Trading, stated in an interview with CNBC that she believes there are “clear signals” that institutional cryptocurrency investment growth would accelerate throughout next year.In the last 12 months, she stated, “it has been astounding to see how much growth in institutional investment has occurred in the cryptocurrency area.”

According to experts at global banking behemoth JPMorgan, the Bitcoin’s rise was being driven by growing demand from institutional investors. This statement was made two months back. It was said by the authors that “institutional investors seem to be flocking to Bitcoin, maybe because it is a stronger hedge against inflation than yellow metal.”

Even though BTC’s short-term liquidity has declined by 32%, long-term investors have increased their holdings by 16% in the first half of 2021, as per statistics from Glassnode’s on-chain data repository.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.