Bitcoin [BTC] earned its nickname “king coin” for a good reason, and its dominance in the realm of cryptocurrencies was a key factor. New data indicated that its dominance could be on the verge of a second increase this year.
Bitcoin dominance to hit 50%
Based on recent data from IntoTheBlock, Bitcoin has witnessed a rise in its dominance over the past week. According to the data provided, BTC dominance was approaching the 50% mark.
This indicates that its market capitalization is edging closer to comprising half of the entire cryptocurrency market capitalization. Furthermore, if this milestone is reached, it would mark the second time this has occurred within the year.
Current Bitcoin market capitalization dominance
Based on data from CoinMarketCap, the current cryptocurrency market capitalization stands at over $1 trillion at the time of writing. Additionally, CoinMarketCap data revealed that Bitcoin currently held a dominance of 49.1% within the cryptocurrency market cap, making it the dominant player.
Ethereum held the second-highest market cap, with a dominance of 18.2% as of this writing. This data implied that, excluding Bitcoin, the total cryptocurrency market capitalization amounted to slightly over $536.3 billion.
Additionally, this highlighted why price movements in Bitcoin often have a significant impact on the broader cryptocurrency market.
Furthermore, a historical analysis of dominance charts revealed that Bitcoin’s dominance began to decline towards the end of 2021. Prior to that, it held over 60% of the market.
However, the launch and acceptance of other cryptocurrencies contributed to the erosion of Bitcoin’s dominance. As of the current moment, its market capitalization still stands at approximately $518 billion.
Additionally, its dominance was affected by declines in its price.
BTC’s current price trend
At the time of writing, Bitcoin was experiencing a slight loss, extending a trend from the previous trading session as observed in its daily timeframe.
Notably, a consistent pattern of weekend losses had emerged over the past three weeks. BTC was trading at approximately $26,590, reflecting a decline of less than 1%.
Furthermore, it was currently hovering around the neutral line on its Relative Strength Index (RSI). This indicated that its bullish momentum was weakening and could transition to a bear trend if the price decline continued.