The market’s dominant position of Bitcoin has not diminished despite the fact that the price fell below $30,000. Altcoins also took a beating just like Bitcoin. The pioneer cryptocurrency had more room to gain market share. Despite the fact that the market was brutal for investors over the last week, the indicators are beginning to point to better forecasts as the month ends.
Bitcoin is still high
Bitcoin has always been the dominant cryptocurrency. This dominance is now in decline as digital assets increase. Although one would expect that Ethereum, a cryptocurrency like Bitcoin, would gain more market share in the future it has not been proven.
Related reading: Market Sentiment Dangerously Negative as Crypto Fear Index Falls To A Two-Year Low| Market Sentiment Dangerously Negative As Crypto Fear Index Drops To Two-Year Low
The bitcoin dominance is now at seven-month peak levels. The current dominance is at 46%. It was last seen at this level in October 2021 after the September crash.
The digital asset’s performance is better than any other indexes. BTC performed better than other indexes despite the fact that May was a tough month.
Source: Market Cap BTC Dominance on TradingView.com| Source: Market Cap BTC Dominance on TradingView.com
For the month of May, Bitcoin’s price is down 24%, a huge fall. However, the large, medium, and small cap indexes are all doing worse. Large Cap Index, which is currently down 27%, and Mid Cap Index are down 31%. The market has fallen in true Small Cap Index fashion, and it’s suffered 37% of its losses.
Altcoins Are Not Too Hot
Altcoins are a market that is highly attractive to investors because it promises high returns. This is what has helped the market flourish during bull rallies. They are more likely to lose the most during sell-offs than they are during bull markets. These have been the case in recent months. While bitcoin is able to keep above 40% of its high-water mark, many altcoins can’t.
Source: Arcane Research| Source: Arcane Research
Cardano is an example. ADA recorded the biggest rallies in 2021’s bull market, but it was also one of most affected cryptocurrencies during this bear market. It has lost more than 84% since September when it hit its record high of $3.10, which was in September.
Bitcoin On-Chain Activity Throttled After LUNA Collapse| Bitcoin On-Chain Activity Throttled After LUNA Collapse
Dogecoin is a popular investor meme coin and has fallen more than 89% since its high. Solana has dropped more than 80%. Comparatively, Bitcoin has outperformed all other cryptocurrency on the market. This explains its continued dominance.
Featured Image from The Washington Independent. Charts from Arcane Research and TradingView.com.
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