Bitcoin dominance has increased to its highest level in 9 months, as altcoins struggle to keep pace with the market leader. This weekend, crypto investors will be keenly watching movements in the Bitcoin price, as well as developments in the broader altcoin market. With BTC dominance now above 60%, the performance of other cryptocurrencies is becoming increasingly important for traders and investors alike. Will BTC continue to lead the way, or are we set for a shift in market dynamics?
Bitcoin’s dominance in the cryptocurrency market continues to soar as most alternative coins (altcoins) declined today, while BTC maintains its position above $27,000. Among the significant losers are ATOM, LDO, and APT, which have plummeted up to 7%.
Bitcoin’s ascent to new heights can be attributed to the US banking crisis, which saw three banks close within days and fueled bailout speculations. The US Federal Reserve’s lending of $300 billion to certain banking institutions pushed BTC upward this week. The cryptocurrency saw a massive rally and crossed the $26,000 mark for the first time in months on Tuesday, after starting the week just above $20,000.
Despite a slight retracement over the next two days, it went on the offensive once more on Thursday and Friday, resulting in reaching a new 9-month high at almost $28,000. Although it hasn’t overcome that line yet, BTC still trades north of $27,000. Its market cap is above $520 billion, while its dominance over the altcoins has reached its highest levels since June 2022 at over 45% on CMC.
Although the alternative coins have experienced significant gains in the past few days, most of them, such as Binance Coin, Solana, Tron, Shiba Inu, and Polkadot, have decreased by similar percentages. The cumulative market cap of all crypto assets has seen a minor decline, with almost $20 billion evaporated. ETH went to a multi-month high of its own above $1,800 but has dropped 2% daily, pushing it just under that level. Dogecoin, Polygon, and Litecoin are down even more in a day, while the most significant losses come from ATOM, LDO, STX, FIL, and APT, which have plummeted between 5% and 8%.
In summary, Bitcoin’s dominance in the market continues to grow, while most altcoins have declined. As always, it’s essential to conduct thorough research before making any investment decisions concerning cryptocurrencies.