Bitcoin’s dominance, which indicates the proportion of Bitcoin in the total cryptocurrency market capitalization, has surpassed the 50% mark, currently standing at $26,907.
As per TradingView’s data, Bitcoin’s dominance surpassed 50% at 6 pm UTC on June 19 and currently stands at 49.9% as of the time of this publication.
This indicates that Bitcoin constitutes 50% of the entire cryptocurrency market capitalization, which amounts to $1.1 trillion. As per Coingecko’s data, Bitcoin’s market capitalization stands at $519 billion at present.
It is worth mentioning that Bitcoin’s market dominance has experienced a significant surge of over 10.5% since November 27, 2022. This increase is attributable to investors’ growing inclination towards Bitcoin as a safe haven in the aftermath of the FTX crisis and the mounting regulatory scrutiny of cryptocurrency assets in the United States.
During the past eight months, Bitcoin’s dominance has increased substantially, whereas Ether’s market dominance has remained relatively stable at around 20% for almost a year. Presently, the collective worth of Bitcoin and Ether constitutes approximately 70% of the total cryptocurrency market.
According to Michael Saylor, the co-founder of MicroStrategy and a prominent advocate of Bitcoin, the cryptocurrency’s market dominance is expected to exceed 80% in the foreseeable future. This is attributed to the intensified regulatory scrutiny by the Securities and Exchange Commission (SEC), which is likely to lead to the disappearance of stablecoins and most other crypto assets.
Moreover, Saylor attributed the absence of significant institutional investment in the crypto industry to the presence of approximately 25,000 alternative cryptocurrencies that have caused confusion and anxiety among investors. He argued that the lack of a clear investment strategy due to the overwhelming number of crypto options has deterred mega institutional investors from entering the market.
Saylor further emphasized that Bitcoin is the sole digital commodity that has gained universal recognition and acceptance in the crypto industry. He acknowledged that SEC Chair Gary Gensler has classified Bitcoin as a commodity, while 68 other cryptocurrencies have been identified as securities by the regulatory authority.
Based on the data from Cointelegraph Price Index, Bitcoin is presently being traded at $26,746, reflecting a 1.5% surge in the past 24 hours. Despite the prevailing “fear” sentiment in the crypto market, which has reached a three-month high, the value of Bitcoin has risen by over 3% in the last week.
Santiment, a cryptocurrency research company, has identified Blackrock’s recent application for a Bitcoin spot ETF as one of the key factors contributing to the recent upward price trend of Bitcoin. Blackrock, a renowned investment firm, has filed for this exchange-traded fund, which has been instrumental in driving Bitcoin’s price surge in recent days.
