While the rest of the crypto market is currently in a bleeding state following the joyful green ride over the past few days, Bitcoin, the top cryptocurrency, has seen a surge in its dominance. This spike in dominance comes alongside the crypto price increase in the past day.
As of March 16, Bitcoin dominance is well above 45% reclaiming the June 2022 levels while also looking to reach the June 2022 dominance high of just above 48%.
A Surge in Bitcoin Dominance, A Plummet In Altcoins?
While the increase in BTC dominance may cause Bitcoin maxis to be on cloud 9, it might not just be good news to altcoin believers. This is because a rise in Bitcoin dominance could mean investors are giving up interest in altcoins and relocating to the top crypto.
Moreover, while the increase in Bitcoin dominance could be a result of the rising US bank crisis which has made many attracted to crypto as a way to store their funds, it could also mean that customers from traditional banks are only seeing Bitcoin as a reputable store of value, ignoring other altcoins.Â
Over the past week, Bitcoin dominance has picked up from the 43% to 44% levels and has spiked to sit at 45.9%, at the time of writing. Though this indicates a rising interest in Bitcoin, BTC still trades just below $25,000 after tapping a nine-month high of $26,500 on Wednesday.
Regardless of the banking crisis that seems to be worsening each day, Bitcoin price has spiked by more than 15% in the past 7 days after falling below the $20,000 mark to trade at $19,700 as of last week Friday when the crisis was just gearing up.Â
In the past week, Bitcoin has added more than $90 billion to its market cap, pushing the global crypto market cap back above $1 trillion while also increasing its dominance by nearly 5% over the same time period.
Altcoins Records DeclineÂ
Over the past 24 hours, the altcoin market has seen sharp declines with larger altcoins by market caps such as Ethereum (ETH), Ripple (XRP), Cardano (ADA), Polygon (MATIC), and Dogecoin (DOGE) are down by more than 1% respectively.Â
At the time of writing ETH is down 1.6% in the last 24 hours to trade at $1,656, XRP by 1.5% to trade at $0.363, ADA and MATIC by 3.1%, and 3.5%, respectively, with a trading price of $0.325 and $1.13. Dogecoin (DOGE) and Solana (SOL) recorded the highest loss among top altcoins, down 4% and 5.3%, respectively.
Meanwhile, out of the larger altcoins, Binance Coin (BNB) has moved in the opposite direction with an upward movement up by 3% in the last 24 hours with a trading price of $313.
Featured image from Unsplash, Chart from TradingView
