Bitcoin Dominance Reaches Over 49%, Highest In 2 Years – What’s Going On?
Bitcoin's (BTC) dominance in the cryptocurrency market has surpassed 49%, reaching its highest level in more than two years.
According to data from CoinGecko, Bitcoin's dominance currently stands at 49.58%, three times the dominance of Ethereum (ETH), the second-largest crypto by market cap, which sits at about 16.7%.
This steady increase in dominance from around 38% at the beginning of the year represents a significant increase in Bitcoin's market share.
Bitcoin's rise to dominance may be the reason for its year-long rally, with the cryptocurrency's value up 81 percent since the start of 2023.
This impressive performance has solidified Bitcoin's position as a leading force in the market.
There are several factors that contribute to surgery.
First, inflation, geopolitical concerns, and the ever-increasing threat of the US government have prompted investors to reduce their exposure to risk and seek safe-haven assets.
Bitcoin, with its decentralized nature and limited supply, has emerged as an attractive alternative for those seeking stability in an uncertain environment.
Additionally, the prospect of a bitcoin exchange-traded fund (ETF) getting regulatory approval has further bolstered confidence in the cryptocurrency.
The approval of a Bitcoin ETF will provide an accessible and regulated way for mainstream investors to invest in Bitcoin, potentially attracting a significant influx of capital into the market.
Bitcoin could hit $42K if Spot ETF approved.
As reported, crypto financial services platform Matrixport has predicted a major Bitcoin rally if a spot ETF hits the market.
Contrast this with precious metals ETFs, which have a market cap of around $120 billion, and Matrixport says we can witness this, with only 10-20 percent of precious metals ETF investors considering switching to Bitcoin ETFs to hedge against currency volatility and volatility. $12 to $24 billion in revenue to Bitcoin ETF.
“If Tether's market cap were to increase by $24 billion, acting as a proxy for ETF earnings, Bitcoin's price would rise to $42,000, which represents a conservative estimate.”
Moreover, a 1% allocation recommendation by RIAs has the potential to raise $50 billion in bitcoin to $56,000, the firm added.
As of late, the optimism surrounding the launch of a Bitcoin ETF has been growing.
Just last week, Coinbase Chief Legal Officer Paul Grewal said the SEC will soon approve a Bitcoin ETF.
“I hope so [ETF] Applications will be issued only as required by law.
It highlighted a recent court ruling that has dealt a blow to the SEC, saying the regulator had no reason to reject Greyscale's bid to convert the GBTC Bitcoin Fund into an ETF.
