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The value dropped to 38% for the first time since June, when the price of the first cryptocurrency reached a local minimum at around $ 28.8 thousand. What is the importance of this indicator and what does the growth of Ethereum have to do with it
Over the past three weeks, the share of bitcoin in the digital asset market has decreased from 46% to 38%. The last time such a decrease in the share of the first cryptocurrency was observed in June, when the value of the asset fell to $ 28.8 thousand, then the share of bitcoin on the crypto market dropped to 37%, and then returned to recovery. Experts from RBC-Crypto explained why the share of bitcoin began to decline again and how this will affect the cryptocurrency market.
Market expansion
The drop in the share of bitcoin to 38% is an indicator of market expansion, according to the co-founder of Crypterium Vladimir Gorbunov. In his opinion, the current decline in the share of the first cryptocurrency is due to the launch of a large number of new projects.
“The market is growing today, including thanks to altcoins, because this affects the increase in market volumes,” the expert explained.
According to Gorbunov, this should not be confused with the “altcoin season” (the period of active growth of alternative coins), since there is no significant rise in the price of tokens now. High activity is observed in altcoins, when bitcoin gains stock at a price, the expert says.
“The longer bitcoin does not decline in price, the more altcoins grow. Today is the time of market expansion, including due to new coins with a large capitalization, this is actively changing the placement in the top 100 cryptocurrencies, “Gorbunov added.
Active growth of Ethereum
The decline in the share of bitcoin on the crypto market is primarily due to the growth of Ethereum in tandem with the first cryptocurrency, explained Cryptorg CEO Andrey Podolyan. According to him, on the BTC / ETH chart, you can see the altcoin breakdown of a strong resistance level. In the short term, the upward trend in Ethereum will continue as the coin continues to be actively bought and withdrawn from exchanges, Podolyan noted.
Over the past three weeks, Ethereum’s share of the cryptocurrency market has increased from 17% to 20.8%. In December, the amount of Ethereum on cryptocurrency exchanges fell to a minimum in the past three years. According to the analyst company Glassnode, as of December 7, the available altcoin offer was 14 million ETH.
“Now the decline in the dominance of bitcoin does not mean that there is an active flow into altcoins, there is a flow into Ethereum,” Podolyan added.
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