Daily Outlook

Bitcoin Market Dominance: From 66% to 33% and Up Again

Some would say the cryptocurrency market is beginning to bounce back; after a seven month bear market, Bitcoin breached the $8,000 mark on July 24 – the first time it has passed $8,000 since May 22. But not only is Bitcoin beginning to climb back to bull status, BTC is also regaining its dominance in terms of cryptocurrency market capitalization (aka market cap).

In the bull market from September to December 2017, Bitcoin occupied a 66 percent share of the total cryptocurrency market cap at its max.

However, the drastic change that occurred in December 2017 was likely due to investors learning there were opportunities to receive a higher reward if they invested in altcoins. Now that the some of the smoke has cleared surrounding the blockchain and cryptocurrency markets, and people no longer believe they will make a 100 percent return overnight – all combined with the uncertainty regarding the legal status of cryptocurrencies – Bitcoin is on its way back to dominating the market once again.

But as the bull market progressed and the price of Bitcoin increased, Bitcoin’s share of the cryptocurrency market cap decreased. When the price of Bitcoin reached its record high of nearly $20,000 on Dec. 17, Bitcoin’s market dominance dipped below 50 percent for the first time since September. Bitcoin declined past the 50 percent market share threshold on Dec. 19 – reaching a level of 48.26 percent – and from that point until mid-January, it was all downhill for BTC. Bitcoin’s market dominance continued to decline and its market share eventually hit an all-time low of 32.45 percent on Jan. 13, 2018.

Bitcoin Market Dominance: From 66% to 33% and Up Again, CoinTelegraph, Aug 21

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