Bitcoin Takes The Crown: Market Cap Dominance Soars Above 58%, Highest Level Since 2021

Bitcoin (BTC) has again taken center stage in the cryptocurrency market as institutional interest rises. This interest has been spurred by major financial giants such as BlackRock, Fidelity and Arc Invest, which have filed with the US Securities and Exchange Commission (SEC) to launch spot bitcoin exchange-traded funds (ETFs).

According According to Coin Metrics, BTC market capitalization dominance has reached a new high for 2023, currently at 58%, which is the highest it has been since April 2021.

bitcoin rules the crypto kingdom

BTC has been the leading digital asset and has maintained its position as the top 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).

BTC dominance fell in the spring of 2021 as traders bid up small-cap altcoins, but it never dropped below 40% of the total market, Coin Metrics reports.

However, with some of the new coins facing intense regulatory scrutiny in the US, BTC moves into 2023. The weighting of BTC in the CMBI 10, an index of the 10 largest cryptocurrencies by market capitalization, is also at a 2-year high of 65%.

Looking at a wide range of assets, BTC’s 85% return year-to-date outperforms other major digital assets. According to the report, the only two assets with higher year-to-date returns than BTC are Bitcoin Cash (BCH) at 102% and Lido (LDO) at 104%.

BTC dominance trend ahead?

On the other hand, crypto analyst Michael Van de Poppe recently shared something insight In relation to the bitcoin dominance chart. According to Van de Poppe, “it looks like the chart wants to continue rallying,” but there are some important 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 faced resistance. This is 10 months before the bitcoin halving event in May 2020.

Van de Poppe noted that the current situation is similar to September 2019. BTC is testing the 200-week MA and EMA once again, and it remains to be seen if it can break above this resistance.

This could be a positive sign for bitcoin investors, as the halving event was followed by a period of strong price growth for BTC.

Overall, while there are some potential challenges for BTC to overcome in the near-term, van de Poppe’s analysis shows that the long-term outlook for bitcoin remains positive.

As of now, bitcoin is trading at $30,100, and continues to experience a decline in its value, showing a 2% drop in the past 24 hours. Additionally, its market dominance, which considers all other cryptocurrencies in the ecosystem, currently stands at 52%. There is a significant gap between its current dominance and the 72% it will achieve in 2021.

Featured Image from Unsplash, Chart from Tradingview.com