The dominance of bitcoin exceeded 50% against the background of "altcoin hibernation"

18.09.2023 13:27

The dominance indicator of the first cryptocurrency returned to 50% after drawdowns in August and early September. At the same time, the total capitalization of the crypto market and the altcoin sector is experiencing a decline. 

The Bitcoin Dominance Index (BTC.D). Data: TradingView.

Currently, $521 billion is blocked in bitcoin. The asset is trading at $26,814, having gained 3.79% over the past week.

The BTC/USDT hourly chart of the Binance exchange. Data: TradingView.

Despite the restoration of dominance, the digital gold exchange rate is still 17% lower compared to the June high. At the same time, since about the middle of summer, the indicator of the predominance of the coin on the market continues to surpass the records of 2021. 

You know what would look better than 50% #BTC dominance?

60% BTC dominance

— Benjamin Cowen (@intocryptoverse) September 18, 2023

"Do you know what would be better than 50% bitcoin dominance? 60% dominance of bitcoin," wrote the head of ITC Crypto, Benjamin Cowan.

According to Root analyst, the volume held by long-term holders of the first cryptocurrency is at around 75.8%. The indicator has almost reached a historical maximum. 

Nearing an ATH in Long-Term Holder Supply! #Bitcoin

— Root ???? (@therationalroot) September 17, 2023

The total capitalization of the crypto market is at $1.09 trillion, having added 4.7% over the past week, according to CoinGecko. At the same time, on September 12, the market experienced a serious outflow of $50 billion after bitcoin fell below $25,000.

While digital gold has started showing slight volatility, altcoins seem to have fallen into a kind of suspended animation. Over the past seven days, the exchange rate of large coins has hardly changed or has gone into the "red zone". 

Top 10 cryptocurrencies by capitalization. Data: CoinGecko.

Positive dynamics is demonstrated only by Toncoin (TON), which in a few days broke out to the tenth place in capitalization. The coin continues its rapid growth against the background of the integration of the crypto wallet into Telegram.

Earlier, BitMEX co-founder Arthur Hayes admitted a possible short-term withdrawal of the value of digital gold below $20,000, followed by a new bullish impulse. 

However, he later pointed to the positive prospects of the first cryptocurrency contrary to the Fed's policy.

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