Solana

Bitcoin

Bitcoin dominance — the ratio of Bitcoin’s market capitalization to the entire crypto market — has notched a new yearly high of 58% amid a crypto and stock market tumble.
The&nbsp;dominance of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;briefly touched 58.1% in the early hours of Aug. 5 <a href="https://cointelegraph.com/news/bitcoin-crashes-below-53k-wiping-out-600-million-leveraged-longs">amid a sudden sell-off</a> that saw Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) drop as far as 18% in two hours, while BTC fell 10% in the same time frame.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/6ae7401d-1a7e-4482-bb84-bf489313b152.png" alt="Bitcoin dominance hits 58% amid altcoin, stock market bloodbath" title="">
 <figcaption style="text-align: center;">
 Bitcoin dominance notched a new high of 58.1% on Aug. 5. Source: TradingView
 </figcaption>
</figure>
IG Markets analyst Tony Sycamore told Cointelegraph that the drawdown serves as a reminder that Bitcoin and crypto assets more broadly sit at the “pointy end” of the risk asset spectrum. 
“It’s a position wash with some recession and hard-landing fears driving it and some war fears as well given the fact that Israel and Hezbollah have been exchanging rockets over the weekend, and the US is ramping up that military presence in the area,” Sycamore said. 
Sycamore explained that the wider bloodbath occurring in Asian markets, including a massive 8% daily stumble in Japan’s Nikkei 225 and South Korean trading halts, came back to a wider risk-off move in the global market. 
<blockquote data-ct-non-breakable="true">
 “If you had to point to three markets or areas that did really well at the start of this year, it’d be the tech trade, it'd be Bitcoin and the Japan trade.”
</blockquote>
“So I don’t think there’s any surprise that they’re the three trades that have fallen by the largest amount,” he added. 
Additionally, Sycamore explained that Ether’s price action had been “copping it” in particular due to the large number of other tokens and ecosystems built on top of the network. 
“When altcoins get poleaxed it blows through into [Ether’s] price action as well,” Sycamore said, noting significant unwinding and sell pressure stemming from crypto trading firm Jump Crypto. 
The price of Ether is down 30% in the last seven days, while major altcoins, including Solana’s (<a href="https://cointelegraph.com/solana-price-index">SOL</a>), BNB (<a href="https://cointelegraph.com/binance-coin-price-index">BNB</a>) and XRP (<a href="https://cointelegraph.com/xrp-price-index">XRP</a>), are down 35%, 25% and 21%, respectively, in the same time frame, <a href="https://www.coingecko.com/" target="_blank" rel="noopener nofollow">according</a> to CoinGecko data. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/47e071b4-4cd1-4dce-8deb-933038b9b29c.png" alt="Bitcoin dominance hits 58% amid altcoin, stock market bloodbath" title="">
 <figcaption style="text-align: center;">
 The top 10 largest cryptocurrencies are all down double digits on the week. Source: CoinGecko
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-58k-cme-gap-8-btc-price-rout-longs-rekt">Bitcoin eyes $58K CME gap next as 8% BTC price rout sees longs 'rekt'</a>
Looking forward, Sycamore noted the upcoming release Institute of Supply Management’s (ISM) Manufacturing Purchasing Managers Index report as something that could shed light on where the market is headed from here. 
<blockquote data-ct-non-breakable="true">
 “I think that ISM number has the potential to either calm or inflame concern because if all of a sudden we get cracking in the labor market, then it would show us the Fed has missed their window, which would probably lead to further downside for all risk assets, including crypto.”
</blockquote>
Sycamore added that if ISM numbers moved into “expansionary territory” then it could be a sign that the market is stronger than expected, putting a solid floor under the price of the risk assets. 
“But if all three manufacturing, labor market, and services point the same way, then that’s potentially really problematic,” he said. 
The last 72 hours have seen as much as <a href="https://cointelegraph.com/news/crypto-crash-300-billion-largest-three-day-plunge-crypto-one-year">$500 billion shaved off</a> crypto’s total market capitalization, the largest three-day sell-off since August 2023. 
Magazine: <a href="https://cointelegraph.com/magazine/5-ways-crypto-bots-are-ruining-crypto-including-auto-memecoin-rug-pulls/">How crypto bots are ruining crypto — including auto memecoin rug pulls</a>

Bitcoin dominance hits 58% amid altcoin, stock market bloodbath

Cointelegraph

Other articles published on Aug 5, 2024

Compound Finance Faces Scrutiny After Controversial Proposal 289 Passes

US Debt Surpasses $35 Trillion: Is Bitcoin a Viable Alternative to Traditional Finance?

Solana's Solend Rebrands to Save and Launches Dumpy.fun for Shorting Memecoins

Wall Street Bulls Look Optimistic About Riot Platforms, Inc.: Should You Buy?

Japan Rate Hike Impacts Bitcoin Prices

Robinhood Halts 24-Hour Trading

Join our free newsletter for daily crypto updates!