Former Bitmex CEO Arthur Haye has said Bitcoin could soon reach 70% dominance in the digital assets market after the recent price crash. Hayes shared this view on X while noting that he has been buying Bitcoin dips.
According to Hayes, he has been accumulating small volumes of BTC all day. He will continue accumulating satoshis even as altcoins decline and enter the zone where he might decide to buy.
He said:
“Been nibbling on $BTC all day, and shall continue. Shitcoins are getting in our strike zone but I think #bitcoin dominance keeps zooming towards 70%.”
Hayes has a reason for backing Bitcoin. He believes the flagship asset will see its value increase significantly at the end of all these crises. According to him, the only solution to the current crisis would be quantitative easing, and he expects that Bitcoin will be a major beneficiary when this happens.
The crypto entrepreneur’s comment comes amid recent bullish calls about BTC, including the prediction that BTC will not drop below $76,500 until April 15, the deadline for filing tax returns in the US. At some point, he joked that he might lose his credibility if BTC dropped below $76,500. That has already played out, with Bitcoin falling as low as $74,000. Still, Hayes has been calling on people to buy the Bitcoin dip.
Whales are buying Bitcoin
While Hayes’ comment has attracted different reactions, his advice on accumulation aligns with what whales are doing. Glassnode data shows that whales that hold 10,000 BTC and more have been busy accumulating, with this cohort briefly hitting a 1.0 accumulation score at the start of the month after 15 days of intense buying.
Although that has now dropped to 0.65, they are still buying. This contrasts the distribution by holders with less than 1 BTC to 100 BTC, who now have an accumulation score trending towards 0.1 – 0.2, showing they are selling.
Nevertheless, the market seems to be in no hurry for now. Bitcoin briefly climbed to $80,000 after news broke that the US wanted to pause the tariff for 90 days. However, the White House debunked the news as fake, causing the market to tumble again.
BTC is now down to $78,000, and analysts believe the next support level is $74,000 because 50,000 BTC was accumulated at $74,200. Glassnode experts noted that most of the investors at this level were active for five months until March 10, when they have remained dormant. From that point, the analysts expect any further decline between $74,000 and $70,000 to be slow as holders bought 175,000 BTC in this zone.
In the case of ETH, the next support level for it, according to CryptoQuant, is $1,290 because this is the average cost basis for whales holding more than 100,000 ETH. The average ETH holder’s average cost is far higher at $2,200.
Bitcoin dominance is at its highest level since 2021
Hayes’s prediction that Bitcoin dominance will reach 70% is premised on the performance of Bitcoin compared to that of other cryptocurrencies. While the recent market turmoil has generally affected all cryptocurrencies, Bitcoin has been the most resilient by a large margin.
The flagship asset has performed positively in most of the top altcoins in the past seven days while seeing the least drop year to date. According to CoinMarketCap, BTC is 16.95% year to date. By comparison, ETH is down 52.70%, XRP 18.22%, BNB 21.25%, SOL 45.10%, DOGE 54.25%, and ADA 37.60%. Only Tron TRX, with an 11.08%, has been a better performer.
Unsurprisingly, the poor performance of altcoins compared to BTC has allowed BTC’s dominance to grow. The flagship asset now dominates at 62.56%, with Ether at 7.52%. This is a sizable increase compared to the start of the year when its dominance was 56.75%. At its current rate, BTC is at its highest level of dominance since January 2021.
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