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Bitcoin’s market dominance continued to decline, bottoming out this week and rebounding to below 40%.According to the data, this is very close to the historical low of 36.7% in January 2018 data From the transaction view.
Bitcoin (Bitcoin) Market dominance refers to the ratio between the market value of BTC and the total market value of cryptocurrencies.
This is not the first decline in dominance in 2021. As early as May, Cointelegraph report According to Coinmarketcap data, BTC only accounts for 40.3% of the total market value of encrypted assets, and it was close to the same level again in September.
Bitcoin Criticism With Peter Schiff, Chairman of Europac Tweet Regarding the events of December 29, it was stated that this indicated that BTC was “losing its first-mover competitive advantage.”
With more than 16,000 alternative passwords to choose from, Bitcoin’s market dominance has fallen below 40% for the first time since June 2018. An unlimited supply of easy-to-create passwords with almost the same attributes, #Bitcoin The first mover advantage is being lost.
-Peter Schiff (@PeterSchiff) December 28, 2021
Research Publish According to TradingPlatforms on December 27th, this data may indicate the upcoming “Alternative season“In the past seven years, the market dominance of altcoins has tripled from 21% in 2014 to around 60% this month.
Ethereum (ETH) Market dominance continues to remain above 20%, close to US$500 billion. In the past year, ETH’s market dominance has doubled from 10%.
In a tweet on December 24, the cryptocurrency analyst “altcoin Sherpa” claimed that the “counterfeit season” has been going on for a full year. They cited a chart tracking the dominance of the BTC market, indicating that the downtrend is likely to continue.
#Altcoin: Mini thread on’wen #Altseason‘. The Alt season has lasted for a whole year, but you didn’t notice it.This is #Bitcoin Advantage chart-You can see that since January 2021, alternatives have flourished. Bitcoin $ ETH pic.twitter.com/c2w1PjHrqV
— Altcoin Sherpa (@AltcoinSherpa) December 23, 2021
It remains to be seen whether institutional investment will help set the bottom line under the dominant indicators.On December 28 interview Noelle Acheson, head of market insights at Genesis Trading, said in an interview with CNBC that she can see “strong signs” of accelerated growth in institutional crypto investment in 2022.
She said that the growth of institutional investment in the crypto sector in the past 12 months was “surprising.”
related: As the cryptocurrency market rebounds, Bitcoin’s dominance rises again
As early as October, from JPMorgan Chase Said that the rebound of BTC at that time was driven by increased interest from institutional investors. They claim that “institutional investors seem to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold.”
According to the chain data Data from Glassnode shows that although the short-term supply of BTC has decreased by 32%, long-term holders have increased by 16% in the 2021 treasury bond.
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