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Bitcoin dominance has reached its lowest level in the past three years, but altcoins have nothing to do with it
Bitcoin currently accounts for 39.73% of the total cryptocurrency market, according to TradingView, which is even the low of 2021. The drop was noted by Jason Choi of the Spartan Group when he posted a chart of Bitcoin dominance on Twitter on January 4.
At the same time last year, the picture was completely different: on January 3, 2021, bitcoin accounted for 73.6% of the market. Since then, its dominance has declined by 46%.
Bitcoin Dominance 2021 – Chart from Jason Choi’s Twitter
The fall in dominance did not affect the growth of altcoins
The Bitcoin Dominance Index has not dropped to such a low level for a long time. It was last fixed at 39.18% in May 2018. In September 2021, bitcoin’s market share fell below 40%, and then recovered and failed again in the second half of the year. The historic low was set on January 11, 2018 at 35.5%.
Bitcoin dominance chart – TradingView
Usually, a drop in Bitcoin dominance signals the onset of the altcoin season, but this is not being observed at the moment. Altcoins are also getting cheaper, only more slowly.
Ethereum’s market share has been growing steadily since January 2020, according to TradingView, and currently stands at 20.23%. The ETH Dominance Index peaked at a local high of 22.35% in early December, but has declined slightly since then.
BTC and ETH together make up about 60% of the total cryptocurrency market, and this is less than the share of Bitcoin alone in March 2021.
Stablecoins collectively account for 7.15% of the total cryptocurrency market capitalization, according to CoinGecko. High-cap altcoins such as Binance Coin (BNB), Solana (SOL) and Cardano (ADA) also increased their stakes to 3.67%, 2.22% and 1.80%, respectively.
Cryptocurrency value forecast
Bitcoin has continued to decline over the past 24 hours, trading at $ 47,160 at time of publication. It has lost 7% of its value over the past week and is currently trading 31.9% below its all-time high set on November 10, 2021.
At the moment, Bitcoin is trading at the lower border of the channel and is below the 200-day moving average, which indicates the inevitability of a new wave of decline in its value. The next support level is at $ 45,000.
You can read the latest Bitcoin technical analysis here.
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