For the first time since December last year, Bitcoin has reached 50 percent dominance in the cryptocurrency market.
It would appear that in the current bearish market posing a high risk of losses, investors are moving assets into Bitcoin – a sure sign that the cryptocurrency is more trusted than other altcoins.
Dominance indicates how much of the total cryptocurrency market investment is shared amongst various assets. Earlier this year, Bitcoin held less than 35 percent of the total market share but has steadily increased over the past few months to take 50 percent.
While several of the other high-value digital assets such as Ripple (XRP), Ethereum and EOS have suffered technical and legal issues this year, Bitcoin has remained a stable and trustworthy investment. Despite various critics pointing out potential future issues for the coin, such as scalability problems and slow transaction speeds, a large group of investors trust Bitcoin’s proven track record that has maintained for almost a decade.
The increased dominance coincides with increased daily volume for BTC which could indicate a possible end to the months-long bear market it has been suffering. Analysts have repeatedly forecast a low of around $5,500 for the asset before recovery but the current market suggests it may not drop that low.
While the low prices have brought a slight increase in buying opportunity, it’s unclear yet if its enough to fuel a full trend reversal. A spike above $6,600 would be a good indication of a bullish breakout but considering indecision from the SEC regarding the Bitcoin ETF, it’s more likely we’ll see slightly further lows before a significant recovery.
One thing is for sure though – the increased dominance proves that while altcoins have gained popularity this year, Bitcoin isn’t going anywhere just yet.
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