Bitcoin Dominance Is Stronger Than It's Been in 6 Months

According to the latest chart provided and calculated by Tradingview, Bitcoin has returned to a level of crypto market dominance it last saw in late October 2021.

The first cryptocurrency, or "grandfather," as it is called by many crypto enthusiasts, controls 45.3% of the entire crypto market, showing 9% growth in dominance over the last two weeks.

For the last 6 months, altcoins have been gradually snatching Bitcoin's share of the crypto market, but when it is time to risk off, we see that Bitcoin is taking its toll. 

Such movement is not surprising, as Bitcoin has always consolidated investors' funds during periods of market turbulence, acting in such cases as Gold 2.0, which many consider it to be

Of course, with monetary policy tightening, the U.S. stock market gradually deflating and the looming recession in many developed countries on the horizon, this is not the limit to the market share growth of the most famous cryptocurrency.

But at the same time, the growing dominance does not tell us that Bitcoin is not facing all these risks. It is just that the instrument itself feels more reliable, which it has repeatedly proved, compared to other digital assets.

All the more, due to the growing panic in the stablecoin sector, Bitcoin remains a favorite safe for storing funds for hardcore crypto enthusiasts and fiat opponents.

Expanding on the theme of the coming global financial crisis, mentioned above, and Bitcoin's role in it, it is important to consider the correlation between the crypto and stock markets, which especially intensified in the last year due to the arrival of large companies with huge capital. 

On the one hand, this is extremely harmful to crypto, but on the other hand it makes them an institutionalized phenomenon and a full-fledged participant in financial markets.

In this regard, crypto investors find themselves facing a dilemma: Which is better? 

To play by the rules of traditional finance, pumping incredible capital and at the same time taking all their risks? 

Or to be independent, in the underground, but without the interest of the crowd and large injections?





























Post a Comment

Previous Post Next Post