Bitcoin dominance has decreased from 73% in January 2021 to 44% to this day. Altcoins are challenging single coin’s dominancy, attracting huge investments.
Bitcoin dominancy(BTC.D) is the measure of how much market capital is being invested in bitcoin to the rest of the cryptocurrency market. Bitcoin dominance dropping doesn’t mean that people aren’t investing in cryptomarket. For example, if a $100 billion investment was made today in the crypto market then bitcoin alone holds the investment of $44 billion. Bitcoin was declared as the best-performing asset in 2020 in a public pool and as a result Bitcoin dominancy saw an all-time high peak in January 2021.
Although bitcoin saw a peak price of $64000, bitcoin dominancy is decreasing since its all-time high which shows the interest and trust in altcoins. Altcoins have been suffering due to bitcoin dominance. The peak of January 2021 also indicated that altcoins will bleed further and will be ignored by investors.
What is the impact of bitcoin dominance? The problem is that investors with huge capital can earn significant profits from a little movement in the market but at the same time people with a small portfolio cannot earn that much from the same movement of the market. Now tables are turning and people have started investing in altcoins and single coin’s dominancy is coming to an end.
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