Bitcoin regains its market share from alternative coins after attaining the highest market cap dominance in 2021 November. The world’s leading crypto momentarily accounted for nearly 42% of the overall cryptocurrency market cap (data from Coinmarketcap).
Bitcoin Dominates the Altcoin Market
Bitcoin has dominated the crypto marketplace since its launch. Its domination remained unequaled for long, influencing the outcome in the cryptocurrency marketplace. Meanwhile, the many altcoins in the crypto world want to overthrow BTC had Bitcoin’s supremacy fading as the alts, ranging from ETH to DOGE, fought for market share.
Though BTC has suffered downtrends in most of this month’s sessions, its $1.68 trillion market share surged from 39% fourteen days ago to about 42%. Bitcoin has had its market cap increasing since October when it plummeted from the highs of 46%. Meanwhile, BTC managed to keep its market dominance at 40% throughout January’s second half.
Unlike the traditional market cap that remained moderately steady after the November ATH, the realized cap has been rationally stable since the November ATH, hovering near $453 billion (data from Messari analytic firm).
Two of BTC’s long-term opponents, Solana and Ethereum, seem to be in massive trouble. That came as Bitcoin suffered a 20% crash in January, exploring levels near $37K, dwarfing the alternative coins marketplace.
Ethereum has lost around 34% since 2022 started and continues to be shaky as the market community debate on ETH 2.0, high fees, and the token’s capacity to race with BTC.
For now, Bitcoin trades around $38,603.55. The crypto has struggled to rally higher since its latest flash crash. Such developments had the altcoin market incurring losses. BTC requires a decisive move beyond $40,000 to trigger near-term bullishness.
Cryptocurrency experts remain optimistic about BTC actions in the long term. Nevertheless, investors remain unsure of the outcome. Bitcoin has eyed the $40K mark for some time, but bulls failed to accumulate the momentum necessary to crack near-term obstacles. A significant move to either extreme will detect BTC’s directional bias.
What are your thoughts about Bitcoin’s performance? You can comment below.