HomeLatest NewsBitcoin dominance drops to 60.4% as altcoins surge

Bitcoin dominance drops to 60.4% as altcoins surge

Bitcoin looks set to linger around $11,000 before seeing further upside movement

Despite testing price levels near a major resistance area of $11,500, Bitcoin has seen its overall market dominance fall in the past 48 hours.

Total market cap stands at around $345 billion, with Bitcoin’s $208.9 billion accounting for 60.4% of total cryptocurrency capitalisation.

On July 28, the Bitcoin dominance index rose to 63.4%, just as the price rally that took it past $10,000 began to take shape. Although it appears bulls had the momentum that would take it well above $12,000, a run to a high of $12,134 ended with bears pushing prices back to lows of $11,000.

As a result, Bitcoin’s dominance has dropped from the 63.4% mark to today’s low of 60.4%. If the metric drops below the 60% mark, it would be the first time it does so since dipping to 55.8% in June 2019. According to historical data from CoinMarketCap, the lowest level the Bitcoin dominance index has dropped was 32.81% on January 15, 2018.

Bitcoin dominance index chart. Source: CoinMarketCap

With the Bitcoin market witnessing far less volatility compared to the dramatic moves of last week — it’s been altcoins that have looked more likely to make significant gains. Bitcoin price rose to within $11,500 in the late hours of trading on Monday, only for the upside to cool off as prices closed around $11,250.

BTC/USD price (weekly chart). Source: TradingView

Ethereum and XRP have both gained over 4% in the past 24 hours, while Chainlink is the hottest coin in the market among the top 20 cryptocurrencies by market cap. LINK/USD has swung 15% in the same period to hit a new all-time high of $9.56.

According to Glassnode, sentiment towards a new uptrend is strong. As such, BTC/USD could benefit from strong network health and liquidity to tick above $12k and kick start the next bull market.

However, the price of Bitcoin could suffer an extended short term setback if traditional markets crash in a fashion similar to Black Thursday with more economic uncertainty on the horizon.

“BTC remained confidently above $10k throughout Week 31, and Bitcoin’s on-chain fundamentals point to the beginning of a potential bull market – but external market forces could still impact this possibility” the firm tweeted yesterday.

Tags:

Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.