Bitcoin dominance falls under 40%

Bitcoin’s
market
dominance
has
continued
to
fall,
bottoming
out
below
40%
this
week.
That’s
very
close
to
the
all-time
low
of
36.7%
in
January
2018,
according
to

data

from
TradingView.

Bitcoin
(BTC)
market
dominance
refers
to
the
ratio
between
BTC’s
market
capitalization
and
the
total
crypto
market
cap.

It’s
not
the
first
time
its
dominance
has
dipped
in
2021.
Back
in
May,

Cointelegraph
reported

that
BTC
had
dipped
to
represent
just
40.3%
of
the
combined
crypto
asset
capitalization,
according
to
CoinMarketCap,
and
it
neared
the
same
level
again
in
September. 


Bitcoin
critic

and
Europac
chairman
Peter
Schiff

tweeted

about
the
event
on
Wednesday,
saying
that
it’s
indicative
that
BTC
is
“losing
its
first-mover
competitive
advantage.”

Research

published

by
TradingPlatforms
on
Monday
stated
that
the
data
may
signal
an
incoming
“alt
season.”
Over
the
last
seven
years,
altcoin
market
dominance
has
increased
threefold
from
21%
in
2014
to
around
the
60%
mark
this
month.

Ether’s
(ETH)
market
dominance
continues
to
sit
above
20%
at
almost​​
$500
billion.
Over
the
past
year,
ETH’s
market
dominance
has
doubled
from
10%.

In
a
Friday
tweet,
Crypto
analyst
Altcoin
Sherpa
claimed
that
the
“alt
season”
has
already
been
underway
for
an
entire
year.
They
referenced
a
chart
tracking
BTC’s
market
dominance,
suggesting
that
the
downward
trend
may
continue.

It
remains
to
be
seen
whether
institutional
investments
will
help
put
a
floor
under
the
dominance
metric.
In
a
Tuesday interview
with
CNBC,
Genesis
Trading
head
of
market
insights
Noelle
Acheson
said
that
she
could
see
“strong
signs”
of
institutional
crypto
investment
growth
accelerating
during
2022.

She
said
that
the
amount
of
institutional
investment
growth
in
the
crypto
space
over
the
last
12
months
“has
been
astonishing.”



Related:




Bitcoin
dominance
on
the
rise
once
again
as
crypto
market
rallies

Back
in
October,
analysts
from

international
banking
giant
JPMorgan

stated
that
the
BTC
rally
at
the
time
was
being
fueled
by
an
increased
appetite
from
institutional
investors.
They
claimed
that
“institutional
investors
appear
to
be
returning
to
Bitcoin,
perhaps
seeing
it
as
a
better
inflation
hedge
than
gold.”

According
to
on-chain

data

from
Glassnode,
although
BTC’s
short-term
supply
has
decreased
by
32%,
long-term
holders
added
16%
to
their
treasuries
during
2021.

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