On-chain data shows that the dominance of Bitcoin (BTC) is on the rise and has now inched toward a 40-month high. This current outlook probably resulted from the attention that institutional investors are receiving from the flagship cryptocurrency. Per recent 13-F filings, many Wall Street firms are plunging their funds into BTC ETF products.
Ethereum Fails to Match up With Bitcoin
Analytics platform Glassnode identified that BTC dominance has moved from 38% in November 2022 to 56% today. Similarly, blockchain analytics platform CryptoQuant shared a chart showing BTC’s dominance expansion in relation to Ethereum’s market cap.
It was noted that BTC had hit a 40-month peak, dominating at 78.5%. This outlook suggests that ETH’s appeal is yet to match up to the top coin’s despite Ethereum supply skyrocketing. The numbers are clear indication of stronger demand for BTC among investors.
Ethereum’s dominance declined by 1.5% and so did that of some other altcoins. Stablecoin dominance went from 17.3% to 7.4%, while that of altcoins dropped to 21.3% from 27.2%.
The premier coin began this consistent journey of dominance towards the end of 2022, right after the broader crypto market faced a harsh market implosion. The anticipation and speculations around a potential spot ETF contributed to the rising dominance. The United States Securities and Exchange Commission (SEC) finally approved the offering at the beginning of 2024. Almost immediately, it began to record massive inflows with BlackRock’s IBIT leading the pack and this further increased the Bitcoin dominance.
The Commission also approved Ethereum ETFs a few month ago but it still has not altered the trend. This is disappointing to many experts who had earlier predicted that Ether ETF would capture about 50% of BTC share it hits the market. Till now, the ETH ETF has limited demand, evident in the low figures recorded.
Future Catalysts For BTC Growth
Just a few weeks before the last halving event, which took place on April 20, 2024, Bitcoin hit a new All-Time high (ATH) of over $73,000.
Four months have passed since the event and the flagship cryptocurrency has barely reached that level again not to talk of hitting a new ATH. In Peter Brandt’s opinion, the current BTC bull market cycle is on its way to becoming the longest post halving in history for a new ATH.
However, BTC outlook could change in the coming months, fueled by some catalysts. The US elections with tightening poll between Donald Trump and Kamala Harris might change the game for the industry.
Read More: Bitcoin Price Nears Major “Short Squeeze”, Peter Brandt Signals BTC Rally
The post Bitcoin Dominance Hits 56% As BTC Continues Post-Halving Bull Run appeared first on CoinGape.
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