Bitcoin (BTC) has once again taken center stage in the cryptocurrency market with increased institutional interest. This interest has been spurred by financial giants such as BlackRock, Fidelity, and Ark Invest, who have filed with the US Securities and Exchange Commission (SEC) to launch a Bitcoin Exchange Traded Fund (ETF).
according According to Coin Metrics, BTC market capitalization dominance has reached a new high for 2023, currently at 58%, the highest level since April 2021.
Bitcoin rules crypto kingdom
BTC has been the leading digital asset and has maintained its position as the best cryptocurrency for a long time. Its market cap of $586 billion is much higher than the combined market cap of the industry, which is $425 billion (excluding stablecoins).
According to a Coin Metrics report, BTC dominance waned in the spring of 2021 as traders bid on altcoins with smaller caps, but it never fell below 40% of the total market.
However, with some new tokens facing intense regulatory scrutiny in the US, BTC has moved ahead in 2023. BTC’s weighting in the CMBI 10, an index of the top 10 cryptocurrencies by market capitalization, also hit a two-year high of 10%. 65%.
Looking at a broader basket of assets, BTC’s 85% year-to-date return outperforms most other major digital assets. According to the report, the only assets with greater year-to-date returns than BTC are Bitcoin Cash (BCH) with 102% and Lido (LDO) with 104%.
BTC dominance crowd trend coming?
On the other hand, cryptocurrency analyst Michael van de Poppe recently shared some ideas Regarding the bitcoin dominance scheme. According to Van de Poppe, “the chart seems to want to continue going higher,” but there are a few key points to remember.
One of the most important findings is that in September 2019, BTC tested the 200-week moving average (MA) and the exponential moving average (EMA) and encountered resistance. This was 10 months before the Bitcoin halving event in May 2020.
Van de Poppe notes that the current situation is similar to September 2019. BTC is once again testing the 200-week moving average and the exponential moving average, and whether or not it can break this resistance level.
This could be a positive sign for bitcoin investors, as the halving event followed a period of strong bitcoin price growth.
Overall, while there are some potential challenges for BTC to overcome in the short term, Van de Poppe’s analysis indicates that the long-term outlook for Bitcoin remains positive.
As of now, Bitcoin is trading at $30,100, and it is still declining in value, marking a 2% drop over the past 24 hours. In addition, its market dominance, which takes into account all other cryptocurrencies in the ecosystem, is currently at 52%. There is a huge discrepancy between its current dominance and the 72% it achieved in 2021.
Featured image from Unsplash, chart from TradingView.com