Market Data Shows Bitcoin Dominance Climbing to Over 56%

Bitcoin has once again proven its robustness, hitting a three-year high in market dominance.

by Faruk Imamovic
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Market Data Shows Bitcoin Dominance Climbing to Over 56%
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Bitcoin has once again proven its robustness, hitting a three-year high in market dominance. This comes as Bitcoin's price experienced significant volatility, which simultaneously pressured altcoins downwards. On April 12, data from Cointelegraph Markets Pro and TradingView highlighted that Bitcoin’s share of the total crypto market capitalization spiked to 56.3%, a figure not seen since April 2021.

The rise in Bitcoin's dominance reflects its relative stability compared to the altcoins, which suffered severe losses over the weekend. A liquidation cascade saw Bitcoin prices dip below $65,300, but the impact was far more devastating for altcoins.

Many of the top twenty cryptocurrencies by market cap witnessed declines exceeding 15%, thereby ceding a greater share of the market to Bitcoin.

Market Reactions and Expert Opinions

The broader implications of this shift were not lost on market observers.

Prominent trader and social media commentator Bagsy pointed out the significance of the Bitcoin dominance chart. "I don’t typically look at Bitcoin dominance, but the chart is impressive considering the amount of new altcoins birthed into the market every day," Bagsy noted on the social media platform X.

Similarly, Daan Crypto Trades, another well-regarded trader, remarked on the resilience of Bitcoin compared to its peers. "Yes, the actual hit on BTC was very minimal and the total downside also wasn’t very relevant," he said, commenting further on the altcoin sector, "The real damage was done in the Altcoin sector which wiped out billions of Open Interest and made for wicks up to 50%." Despite the current setbacks, the sentiment around altcoins remains hopeful.

Historically, Bitcoin bull markets have seen an initial surge in Bitcoin's dominance, followed by strong performances from altcoins during prolonged periods of Bitcoin consolidation. Mikybull Crypto, a fellow trader, predicts a promising future for altcoins.

"Altcoins market cap is perfectly following the previous Alts season step," he explained in an X post, suggesting, "This is the last shake-off before it rips explosively upward coupled with Bitcoin dominance downward trend."

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