• Bitcoin dominance has hit 41.5% as of Jan. 20 — the highest level over the past six months.
• Ethereum dominance is also up and currently stands at 19.4%.
• BTC-ETH Market Cap Dominance has been trending downwards, indicating an outperformance of Ethereum over Bitcoin since early 2021.
The crypto market has been abuzz over the past few weeks, with Bitcoin (BTC) reaching its all-time-high and crossing the $22,000 mark. However, this is not the only development that has caught the attention of crypto enthusiasts. Bitcoin’s dominance in the crypto market has also been on the rise, and it has now reached its highest level since July 2022.
According to data from Glassnode, Bitcoin’s dominance has hit 41.5% as of Jan. 20. This is the highest level that it has seen over the past six months. Ethereum’s dominance in the market is also up and currently stands at 19.4%.
The BTC-ETH Market Cap Dominance is an oscillator that tracks the macro outperformance trends between the top two crypto-assets. It considers only Bitcoin’s market cap relative to the combined market cap of Bitcoin plus Ethereum. Lower values and downtrends indicate an outperformance of ETH over the pink line. This means ETH has been outperforming BTC since early 2021.
The entire crypto space’s market cap has also been increasing steadily over the past few weeks and currently sits at just under $1 trillion. This is an impressive feat, especially considering that it has been achieved in the midst of a pandemic-induced economic crisis.
The increasing dominance of Bitcoin in the crypto market is a testament to its growing popularity. As more people become aware of the potential of cryptocurrencies, more of them are investing in Bitcoin as a way to hedge against traditional financial markets. This is leading to an increase in the demand for Bitcoin, which is in turn driving up its price and dominance in the market.
It will be interesting to see how the crypto market evolves in the coming months. With Bitcoin’s increasing dominance, it is likely that other cryptocurrencies will also gain traction and increase their own market share. It is also possible that the crypto space will become more competitive, with different coins vying for dominance in the market. Whatever the outcome, it is clear that Bitcoin is currently the leader in the crypto market and it looks set to stay that way for the foreseeable future.
