Bitcoin Can Continue Rally Despite Falling Dominance: Analyst
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Bitcoin Can Continue Rally Despite Falling Dominance: Analyst

May 1, 2021      Jafrin Ahmed

Bitcoin dominance is at a 33 month-low while Ethereum’s share of the market is gaining momentum. In 2018, this pattern was seen as a mark for a major bearish correction. However, despite Bitcoin’s falling dominance, crypto-journalist Colin Wu shares that both the cryptocurrencies continue rallying without eating each other’s shares.

Bitcoin Dominance is On a Steady Decline

Bitcoin dominance is on a steady decline over the past month falling to a new low of 48.42% from a 72% dominance at the start of the year.

While a falling Bitcoin dominance is seen as beneficial for the altcoin market, most of the altcoins have started picking up their pace.

For instance, the leading cryptocurrency is currently hovering around the $57,000 price mark while Ether registered three new all-time highs over the past three days alone.

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Ether is currently trading at $2,845 registering another new all-time high today at $2,846. It looks well set to breach the $3,000 price mark in the coming week.

Meanwhile, Bitcoin’s share of the global cryptocurrency market cap has fallen relative to the ether.

In response to this, notable Chinese crypto journalist, Colin Wu shares that Bitcoin’s dominance touched the 47.54% level last seen since August 2018.

In contrast, Ethereum’s share of crypto market capitalization surpassed 15%. He shares that a similar situation occurred during the start of the 2018 crypto winter and the final endings of the 2017 rally.

Bitcoin Can Continue With Its Rally

Despite the bearish signal, Wu suggests that history doesn’t repeat itself this time around. He wants to express that the current crypto market situation is fueled mostly by institutional interest and DeFi mania.

For instance, according to the Bitcoin Treasuries dashboard, publicly traded companies hold 1,424,841 Bitcoin, or 6.78% of its net released supply, worth approx. $77 billion.

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Meanwhile, the total volume of assets locked in the DeFi segment surpassed $66 billion for the first time ever, which was just below $1 billion a year ago.

Hence, he suggests that both cryptocurrencies can continue with their rallies without eating each other’s shares.

#Bitcoin #Bitcoin dominance
Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.