BTC Dominance Soars as Altcoins Stumble
The dominance of Bitcoin on CoinMarketCap (CMC) has crossed the 48% mark, its highest levels in over two years, despite remaining static in recent days. Meanwhile, several larger-cap altcoins, including Atom, Apt, and ADA, have struggled to chart minimal daily gains.
Last week, Bitcoin was trading sluggishly around $26,000, with markets focussed on the US CPI figures and the upcoming Federal Open Market Committee meeting. On Wednesday, the inflation rates showed only minimal decline, and the effect on bitcoin’s price moves was brief, with only a $200 spike. As expected, the Fed announced it was pausing its monetary policy of raising interest rates on Thursday.
What was more unexpected was the asset’s drop of over a $1000 in the following hours to chart a three-month low of just under $24,800. But the price rebounded on news that BlackRock had filed for a Bitcoin Spot ETF. Initially, there was a price surge of $1,000 earlier than climbing up to $26,800, the weekly high on Saturday. Since then, BTC has calmed and maintained roughly $26,500. Its market cap is marginally above $510 billion.
However, Bitcoin’s dominance over altcoins, comprising 48.1% on CMC, has surged to the highest level in two years.
On the other hand, most altcoins witnessed a soar on Saturday but have since failed to maintain the momentum, especially larger-cap altcoins. ETH, BNB, SOL, TRX, MATIC, AVAX, and Cardano have plummeted by about 1% in the last 24 hours. Cardano, which dropped the most among the top 10, fell by more than 2%. However, Ripple and Dogecoin made up for some gains. The crypto market cap remained almost unchanged at under $1.070 trillion.
It is worth noting that Flare (FLR) has broken into the top 100 after a massive 12% daily surge.
All said and done, even though Bitcoin has been on an upward trend since the end of July, its gains have not been mirrored in the altcoin market. On the contrary, altcoins have retreated, with some analysts predicting that the altcoin season is over and that Bitcoin dominance will only continue to rise.