Bitcoin’s Market Share Soars Close to 50% as Altcoin Meltdown Spurs Flight to Safety
Bitcoin (BTC) witnessed a significant surge in its dominance rate within the overall cryptocurrency market capitalization early on Saturday. Data from the charting platform TradingView reveals that BTC’s dominance rate nearly touched the 50% mark, marking its highest level since April 2021.
This upswing in Bitcoin’s dominance coincided with a sharp decline in alternative cryptocurrencies (altcoins) such as SOL, MATIC, DOGE, and ADA. These altcoins experienced substantial double-digit losses amidst rumors of a proprietary trading firm offloading a $2 billion portfolio.
In contrast, Bitcoin only experienced a modest 3% decline, indicating its relative resilience and potential status as a safe haven asset. Investors appeared to be moving their funds away from altcoins and towards Bitcoin, which remains the largest and most liquid cryptocurrency in the world.
Crypto trader and analyst @52kskew, who goes by a pseudonym, highlighted the notable increase in Bitcoin’s dominance amidst the altcoin market sell-off. They suggested that this trend could be an initial stage before larger market crashes occur.
BTC’s dominance rate has been steadily rising since November, with a significant surge observed during the U.S. banking crisis in March. This current breakout from a three-year oscillation pattern suggests that Bitcoin may continue to outperform other cryptocurrencies in the months to come, as stated by Lewis Harland from Decentral Park Capital.
Saturday’s risk aversion also appeared to benefit Tether, the largest stablecoin pegged to the U.S. dollar. Tether’s dominance rate saw a 5% jump, reaching 7.82%, marking its highest level since January 8, according to data from TradingView.