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- The price of Bitcoin rose on Monday, adding $30 billion to the cryptocurrency market.
- Bitcoin’s dominance, a measure of its market share, has reached its highest level in 31 months, indicating its strength.
- This rise is attributed to renewed interest in Bitcoin fundamentals, institutional support, and reduced selling pressure, which strengthens its position in the cryptocurrency market.
Bitcoin jumped 2% early Monday, adding $30 billion to the cryptocurrency’s market cap. But there’s another potential bullish harbinger for BTC: According to data from TradingView, Bitcoin’s dominance has just reached its highest level in 31 months.
Bitcoin dominance is at a 31-month high
Dominance is cryptocurrency industry terminology for a coin’s percentage of market share as measured by total market capitalization. Think of it as the size of each coin’s piece of the market cap pie.
As TradingView explains:
“It’s a great way to see how big a coin is in relation to the entire cryptocurrency market – the value of everything is compared. It’s calculated by dividing the market cap of a coin by the total market cap of the top 125 coins and then multiplying it by 100.
This is positive news for the Bitcoin price after several weeks spent quietly trending slowly lower since June. Meanwhile, the Ethereum vs. Bitcoin index has been “Flippening” recently Arrived in 15-month low of 35%.
Bitcoin prices rise on Monday
On Monday, Bitcoin bulls took Satoshi’s legacy chain coin to a flying start on the price charts:
After several days of disappointing price performance, Bitcoin finally began a significant rally that took it north of over $1 million… and altcoins have followed suit.
But Bitcoin’s competitive market share has been growing steadily since October 2022, when Bitcoin’s dominance bottomed out in the chart nearly a year ago after a long decline from 71% in November 2020.
Bitcoin dominance has not been this high since March 2021.
Why is Bitcoin dominance rising?
Cryptocurrency investors are once again returning to Bitcoin’s basic thesis.
The safety of decentralized banking, with a well-designed peer-to-peer network of qualified nodes, is finally making sense again in the wake of the FTX experiments that highlighted CeFi’s failures.
This is likely an explanation because the rise in Bitcoin dominance coincided exactly with the months following the collapse of FTX, Luna-Terra, and several cryptocurrency banks and CeFi projects.
Meanwhile, 50% of Bitcoin He didn’t move in a year.
According to Forbes Digital Assets:
Coupled with the institutional desire to see Bitcoin products approved and begin trading reinforces the fact that Bitcoin is increasingly viewed as an asset class, and that Bitcoin continues to separate itself from the plethora of other token projects that have flooded the market in the past few years. reinforces this trend.
Therefore, there is less selling pressure for BTC on cryptocurrency exchanges, and holders have strong conviction in it. This is a strong contributor to Bitcoin’s dominance over competing cryptocurrencies.
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