TL;DR Breakdown:
- Bitcoin dominance has surged to over 45% following the recent surges in price.
- Most altcoins have barely made an increase in the past days, given the growing attention and capital rotating to BTC.
Bitcoin dominance has been gradually growing in the past days following the increases in the market price. Today, the largest digital currency has a market dominance rate of 45.3% as the price surged to $56,450, a level not since the past five months.
Bitcoin dominance grows in line with market trend
The majority of altcoins haven’t posted any significant increase since the Bitcoin dominance began to peak. This is indicative that most investors are keen on BTC. Thus, more capital is flowing into the largest crypto asset than in most of the altcoins, and some industry players said this trend is likely to continue in this quarter.
On-chains already confirmed Bitcoin whales are accumulating. The total Bitcoin supply of addresses holding between 100 to 1,000 BTC is starting to peak out again. These capitals rotating to Bitcoin – probably from the alts market – are based on the Uptober trend and bullish predictions that Bitcoin will cross the long-sought $100,000 in Q4.
Basically, as attention on Bitcoin steadily increases, “we also expect BTC to outperform altcoins and the money to rotate into BTC from alts going forward,” the CEO of Delta Exchange, Pankaj Balani, previously said. On this trend, the leading crypto may continue to outperform altcoins; hence, more increase in Bitcoin dominance.
Most people in Crypto Twitter hold a similar view that altcoins may not make any significant moves yet until the market dominance of BTC begins to consolidate or shrink again.
The market state
At the time of publication, Bitcoin was trading at $56,240, up 2.4% in the last 24 hours and over 18% in the last seven days. The market capitalization is around $1.06 trillion. At the same time, the top-ten altcoins were down in the 24hrs count. Ether (ETH) was trading at $3,542, which is a 0.34% drop.
