Bitcoin dominance hits 3-month high as ‘hammered’ altcoins risk dive
Bitcoin’s dominance of the cryptocurrency market has reached a three-month high, as investors flee riskier altcoins.
Bitcoin’s market cap dominance, which is calculated by dividing its market cap by the total market cap of all cryptocurrencies, hit 51.35% on Oct. 9, 2023. This is the highest level since mid-July 2023.
The rise in Bitcoin dominance comes as altcoins have been hammered in recent weeks. For example, Ethereum, the second-largest cryptocurrency by market cap, has fallen by more than 20% since the beginning of October 2023. Other altcoins, such as Solana and Avalanche, have seen even sharper declines.
There are a number of factors that may be contributing to the rise in Bitcoin dominance. One factor is the ongoing bear market in cryptocurrencies. As investors become more risk-averse, they are more likely to flock to Bitcoin, which is seen as the safest and most established cryptocurrency.
Another factor is the increasing adoption of Bitcoin by institutional investors. In recent months, a number of large institutional investors have announced that they are investing in Bitcoin. This has helped to boost the price of Bitcoin and its market dominance.
Finally, the rise in crypto market today dominance may also be due to the fact that altcoins have been underperforming Bitcoin in recent months. While Bitcoin has been relatively stable, altcoins have been volatile and have seen sharp declines. This has led some investors to sell their altcoins and invest in Bitcoin instead.
What does this mean for altcoins?
The rise in Bitcoin dominance is a negative sign for altcoins. It means that investors are becoming more risk-averse and are less interested in investing in alternative cryptocurrencies.
This could lead to a further decline in the prices of altcoins. In the worst-case scenario, some altcoins could even be forced out of business.
How can altcoin investors protect themselves?
Altcoin investors should be careful and should only invest in projects that they believe have strong fundamentals. They should also avoid investing in altcoins that are too volatile or that have a low market cap.
If you are an altcoin investor, you may also want to consider diversifying your portfolio by investing in other asset classes, such as stocks and bonds. This will help to reduce your risk if the crypto market continues to decline.
The rise in Bitcoin dominance is a significant development. It shows that investors are becoming more risk-averse and are less interested in investing in alternative cryptocurrencies.
This could lead to a further decline in the prices of altcoins. In the worst-case scenario, some altcoins could even be forced out of business.
Altcoin investors should be careful and should only invest in projects that they believe have strong fundamentals. They should also avoid investing in altcoins that are too volatile or that have a low market cap.
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Additional information
In addition to the above, here is some additional information about Bitcoin dominance and its potential impact on altcoins:
- Bitcoin dominance is a measure of Bitcoin’s market share relative to all other cryptocurrencies. It is calculated by dividing Bitcoin’s market cap by the total market cap of all cryptocurrencies.
- A high crypto markets news dominance indicates that investors are more interested in Bitcoin than altcoins. A low Bitcoin dominance indicates that investors are more interested in altcoins than Bitcoin.
- Bitcoin dominance has been on the rise in recent months, as investors have become more risk-averse and have sought refuge in Bitcoin, which is seen as the safest and most established cryptocurrency.
- The rise in Bitcoin dominance is a negative sign for altcoins, as it means that investors are becoming less interested in investing in alternative cryptocurrencies. This could lead to a further decline in the prices of altcoins.
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Altcoin investors should be careful and should only invest in projects that they believe have strong fundamentals. They should also avoid investing in altcoins that are too volatile or that have a low market cap.
