On October 24, market data showed that the Bitcoin price fell below $66,000 at the lowest point. Since October 21, the upward momentum of Bitcoin has shown signs of weakness, falling all the way from the high of $69,500 to a low of $65,260. The trend of Ethereum was synchronized with Bitcoin, sliding all the way from $2,770 to a low of $2,440. According to Coinglass data, the market liquidation amount reached $279 million in the past 24 hours, with long positions accounting for $202 million.

Bitcoin Dominance Index Reaches Three-Year High

The Bitcoin Dominance Index (BTC.D) represents the current market share of Bitcoin in the cryptocurrency market. Since around September 2022, the market share of BTC has been on an overall upward trend. According to Coinmarketcap data, BTC's market share has recently approached 58%, up more than 8% year-to-date, reaching a high since April 2021.

Inflows to Bitcoin Spot ETFs Become a Key Factor

It is worth noting that the rise in Bitcoin's market share in this round of the market is mainly driven by the large-scale inflow of funds into Bitcoin spot ETFs, especially the participation of institutional investors. According to data disclosed by Ki Young Ju, CEO of CryptoQuant, institutional holdings account for about 20% of US Bitcoin spot ETFs. Asset management companies hold about 193,000 Bitcoins. Benefiting from spot ETFs, 1,179 institutions have invested in Bitcoin so far this year.

USDT Market Cap Hits New High, USDT.D Touches Support

The total market cap of stablecoins has increased its share by taking away market share from Ethereum, excluding other Altcoins. Its share of the total market cap of BTC, ETH, and stablecoins has grown from 7% in 2024 to 10%. According to defillama data, the total market cap of stablecoins is currently reported at $172.78 billion, a new high since May 2022. Among them, the market cap of USDT has reached a historical high of $120 billion, accounting for 69.49% of the total stablecoin market cap. This has also been the main driving force for stablecoins to seize market share from ETH in the past six months.

Weakening Demand

From a medium to long-term perspective, the absolute realized profits and losses in the Bitcoin market are currently showing a significant downward trend. Since Bitcoin reached a historical high of $73,000 in March 2024, the speed of new capital inflows into the market has slowed significantly. According to data provided by glassnode, the capital inflow into the market currently is about $730 million per day, which, although still not a small amount, has decreased significantly compared to the peak of $2.97 billion in March. This indicates that the momentum of market demand has weakened significantly. Although capital is still flowing into the market, the scale is not enough to drive a long-term stable rise or fall in Bitcoin prices, but is more likely to experience violent fluctuations with relatively small capital changes. This lack of liquidity makes Bitcoin likely to continue to experience significant price volatility in the short term, and the overall market lacks a clear direction, making the wait-and-see attitude of large capital more pronounced. Original Link Welcome to join the official BlockBeats community: Telegram subscription group: https://t.me/theblockbeats

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