Bitcoin Dominance Remains High As Market Sell-Offs Settle
May 26 2022 - 6:00PM
NEWSBTC
Bitcoin dominance over the market has still not receded even as the
price has fallen below $30,000. Just as BTC had taken a hit, so had
the altcoins. This had given the pioneer cryptocurrency more leeway
to eat back into the market dominance. Even though the market has
been brutal to investors in the past week, it is starting to level
out and as the end of the month draws closer, indicators are
starting to point towards better forecasts. Bitcoin Still On The
High Side With Bitcoin, there has never been a dispute regarding
its dominance in the crypto space. However, this dominance has
since been declining as more digital assets gain ground. It was
expected that cryptocurrencies such as Ethereum would continue to
win more market share but that has not proven to be the case.
Related Reading | Market Sentiment Dangerously Negative As
Crypto Fear Index Drops To Two-Year Low Instead what has happened
has been that bitcoin dominance has climbed back up towards
seven-month highs. It is currently sitting above 46% and the last
time the dominance was this high was back in October 2021 following
the September crash. This dominance is also evident in the
performance of the digital asset compared to the other indexes in
the space. The month of May had hit all of the indexes hard,
resulting in double-digit losses across the board but BTC has held
up better in comparison to its counterparts. BTC dominance recovers
above 45% | Source: Market Cap BTC Dominance on TradingView.com For
the month of May, Bitcoin’s price is down 24%, a huge fall. But the
small, mid, and large cap indexes have all done worse. The Large
Cap Index is down 27% since the month began and the Mid Cap Index
is down 31%. In true Small Cap Index fashion when the market is in
a downtrend, it has recorded the most losses with a 37% decline
since the month began. Altcoins Not Looking Too Hot The altcoins
market is one that attracts investors due to the fact that it holds
high promise for maximum returns. This has seen the market bloom
throughout the bull rallies. But just as they are likely to run
high during bull markets, they are also likely to incur the most
losses during market sell-offs. This has been true so far in recent
months. Whereas bitcoin has been able to retain above 40% of its
all-time high value, a lot of altcoins cannot say the same.
BTC outperforms other indexes | Source: Arcane Research An example
of this is Cardano. ADA had recorded one of the largest rallies
during the 2021 bull market but it has also been one of the
worse-hit cryptocurrencies in the bear market. Since hitting its
all-time high of $3.10 in September, it has since lost over 84% of
its value. Related Reading | Bitcoin On-Chain Activity
Throttled After LUNA Collapse Dogecoin, an investor meme coin
favorite, is down more than 89% from its all-time high. Solana is
down more than 80%. In comparison to these, bitcoin has been one of
the best performers in the market, which explains why its dominance
has continued to grow. Featured image from The Washington
Independent, charts from Arcane Research and TradingView.com Follow
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