This year, every cryptocurrency lost. From BTC to altcoins, the bearish market has been dominant. While every cryptocurrency suffered the negative effect of the market, some suffered more than others. In fact, some cryptocurrency projects will have to shut down because of a lack of funds. As altcoins fall, BTC continues to lead as the most valuable cryptocurrency in the world. Apart from taking the lead as the most valuable, it is also retaining its position as the most dominant cryptocurrency in the world.
Bitcoin Dominance Hits 3-month High
According to the data on CoinMarketCapital, BTC is now 55% more dominant than other cryptocurrencies. What this means is that 55% of the cryptocurrency market share is for BTC. This is the highest spike in dominance BTC has had in the last three months. Before this rise, the last time it took 58% of the market share was on the 12th of September.
Ethereum has suffered a great deal with its market share falling from 15% to 8.5% within the same 3-month period. XRP, on the other hand, has increased from 5.5% to 11.4%. Even if the rise in the dominance of XRP is significant, it is still not high enough to contend with BTC.
BTC has also benefited from the fall of BCH. From having a 5% share in the market, BCH now has only a 1.6% share. Some experts have given up on the cryptocurrency permanently. The crash in price and market capitalization has made BCH the worst performing coin of the year. It has fallen by 97.5% from its all-time high of $4,100 which it reached almost one year ago.
Why Has BTC’s Market Share Increased Amid The Price Decline
The fall in the price of BTC has affected the entire market as expected. This isn’t News. There is always a relationship between the price of BTC and the price of other cryptocurrencies. Within the last one month, Bitcoin has fallen by 46%. Irrespective of this, its market share has increased.
One possible reason for this is that cryptocurrency investors are dumping their altcoins and holding their Bitcoins. This is because they have more faith in BTC than in many small market capitalization coins. Another possibility is that they are exchanging their altcoins for more stable coins like Bitcoin. This is a rational explanation for the increase in dominance that is not influenced by price.
The cryptocurrency market, in general, has been sliced in half in terms of market capitalization. Over one month alone, the market capitalization has fallen to $100 billion from $200 billion. In all 12 months this year, the most significant fall in price was recorded in November. What’s more, some experts claim that BTC hasn’t reached bottom and there will be more pain in the market. Some anti-crypto individuals have been rejoicing over the fall of BTC. However, when you look at the bigger picture, you’ll see that the battle is far from over.
Bitcoin (BTC) Price Now
At the time of writing, BTC was trading at $3,501.12. It is up by 1.95% against the USD with a trading volume of $4,634,740,647 and a market capitalization of $60,985,846,717.