2024

Bitcoin

April

According to a report by Kaiko Research, Bitcoin’s market dominance has increased to 54.9% of the total cryptocurrency market cap, reaching its highest level since April 2021.
This increase reflects the growing influence of Bitcoin, particularly on the top 50 altcoins, as it continues to outperform other digital assets during times of market uncertainty.
During the sharp market sell-off on August 5, triggered by an unexpected hike in interest rates in Japan, Bitcoin’s cumulative volume delta (CVD), a key measure of buying and selling pressure, remained positive on U.S. exchanges. Meanwhile, altcoins saw heavy selling pressure, further highlighting Bitcoin’s role as a “safe haven” for investors during turbulent times.
Bitcoin’s CVD remained strongly positive from August 4-6, while the top five altcoins struggled with widespread selling on major exchanges, Kaiko Research analysts noted. “Bitcoin’s ability to maintain positive buying pressure while altcoins experienced sharp declines strengthens its status as a preferred asset during the sell-off,” the analysts wrote.
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The launch of spot Bitcoin ETFs in the US in January 2024 also played a significant role in strengthening Bitcoin’s dominance. According to the report, the launch of ETFs attracted the attention of institutional investors who viewed Bitcoin as an investable asset with lower risk compared to altcoins. This inflow of institutional capital helped Bitcoin consolidate its position even as altcoins faced greater volatility and higher risk premiums amid a challenging macroeconomic environment.
As Bitcoin continues to gain ground, altcoins remain vulnerable to fluctuations in the broader market. The Kaiko report showed that altcoins, particularly the top five altcoins by market cap, faced significant selling pressure during the August sell-off, and uncertainty surrounding these assets persists.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/what-does-bitcoin-dominance-tell-us-why-is-it-increasing-here-is-the-latest-report/" rel="noopener noreferrer nofollow">What Does Bitcoin Dominance Tell Us? Why Is It Increasing? Here is the Latest Report</a>

What Does Bitcoin Dominance Tell Us? Why Is It Increasing? Here is the Latest Report

Bitcoin Sistemi EN

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