Bitcoin has once again asserted its dominance in the cryptocurrency market. According to TradingView data, Bitcoin’s market capitalization has surpassed the combined value of all other cryptocurrencies. This milestone is a breath of fresh air for Bitcoin enthusiasts, who have seen its market share fluctuate over the years.
On Monday, TradingView’s BTC dominance metric climbed above 50%, a level not seen since May 2021. This increase in dominance coincided with a challenging period for Bitcoin, marked by China’s ban on crypto mining and Tesla distancing itself due to environmental concerns. Consequently, Bitcoin experienced a significant price drop during that time.
Interestingly, Ethereum (ETH) faced an even steeper decline than Bitcoin. The ETH/BTC pair fell to a ratio of just 0.05 during this tumultuous period. Similar trends have emerged recently, with the ETH/BTC ratio dropping from 0.07 on June 6 to 0.064 as of now.
Notably, other prominent altcoins such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) have also struggled to keep up with Bitcoin. A lawsuit filed by a US regulator against Coinbase alleging that these three coins are unregistered securities exacerbated their decline. However, it’s worth mentioning that the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has reiterated his stance that Bitcoin should be classified as a commodity.
The SEC’s lawsuit against Binance, a major cryptocurrency exchange, identified its native token BNB as a security. Consequently, BNB’s market value, which ranks fourth among cryptocurrencies, dropped by 20% since the beginning of the month.
Critics often argue that Bitcoin’s dominance metric underestimate its actual market share, primarily due to the inclusion of stablecoins in the calculation. Stablecoins, which are essentially digital dollars, experienced a downturn this year after the SEC compelled Paxos to wind down BUSD, erasing billions of dollars in tokens from circulation.
Notably, MicroStrategy’s executive chairman, Michael Saylor, predicts that Bitcoin’s dominance will exceed 80% as regulators tighten their grip on other digital assets. This projection further bolsters Bitcoin’s position in the market.
In recent news, Bitcoin has seen a 6% increase in value since last week following BlackRock’s filing for a Bitcoin Spot ETF. This development has sparked optimism among investors, who anticipate unique approval from the SEC.
As Bitcoin’s dominance surges once again, the cryptocurrency market landscape is undergoing significant shifts. Bitcoin’s enduring prominence and its ability to weather storms make it a force to be reckoned with in the digital asset realm.