Bitcoin's market dominance rate reached 52.7% last week, this is the highest level in 3 years.
Bitcoin Dominance reaches highest level since April 2021. Photo: AMBCrypto
Bitcoin Dominance - a measure of Bitcoin's Capital compared to the total cryptocurrency market Capital - overwhelmingly reached 52.7% over the past week. This is the highest level in the past 3 years, since April 2021.
Bitcoin Dominance exceeds 52.7%. Source: CoinStats
BTC 's market dominance rate went from 48.2% on June 22 to 51.9%. After opening Ethereum ETF trading , the upward momentum continued steadily.
Notably, a sell-off hit the market right after the launch of the ETH ETF, but Bitcoin is still one of the coins with the strongest recovery, even climbing to the threshold of 70,000 USD . Explaining this, the market has almost absorbed all the negative news from Mt. Gox paid off its debt , just as the German government liquidated $3 billion in Bitcoin .
1D graph of BTC/ USDT pair on Binance at 09:45 AM on July 31, 2024
In contrast, ETH has shown weakness in price action. Other altcoins were also far behind, further consolidating BTC 's dominance to a three-year high.
Source: Coin360
Bitcoin's strength can be explained by several factors:
- Bitcoin escapes Grayscale 's GBTC conversion risk , while ETH still faces outflows from Grayscale's ETHE.
- BTC is still the only cryptocurrency with an ETF established, while the ETH ETF has only been trading for a week. As a result, BTC is still benefiting from inflows from traditional investors looking to gain exposure to cryptocurrencies through ETFs.
- The time when Bitcoin Dominance increased also coincided with the Bitcoin Conference 2024 , a highly anticipated event with the presence of US presidential candidate Donald Trump . Given the former President's pro-Bitcoin stance , the market may have taken into account potential statements and plans surrounding BTC in case he is re-elected.
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