- Bitcoin has continued to dominate the crypto market despite recent declines.
- The leading cryptocurrency recently rose above the $61,000 price range.
- Bitcoin’s dominance could increase further, influencing the overall trend of the cryptocurrency market capitalization.
Despite recent fluctuations, Bitcoin’s dominance in the crypto market remains unshaken, with the asset recently rising above the $61,000 price range. This article delves into the factors contributing to Bitcoin’s sustained dominance and its potential impact on the overall crypto market.
Bitcoin Dominance Stays Above 50%
Bitcoin’s prices have been fluctuating, moving in and out of the red zone, highlighting the lackluster trend it has been experiencing. Despite these fluctuations, Bitcoin dominance has managed to stay above 50%, albeit with marginal changes. This sustained dominance above the 50% mark has also influenced the overall trend of the cryptocurrency market capitalization.
Analysis of Bitcoin’s Market Dominance
AMBCrypto’s analysis of Bitcoin’s dominance data from CoinMarketCap indicated that towards the end of the previous year, BTC dominance dropped below 50%, signaling a decrease in BTC’s market cap. However, at the onset of 2024, the market cap regained the 50% threshold and continued to rise. As of the last recorded data on 11th May, BTC dominance stood at over 53%. It’s worth noting that CoinMarketCap calculates data weekly. As for the 24-hour data from Crypto Rank on 12th May, BTC dominance had fallen to around 50%. However, within the last 24 hours, BTC dominance has increased by approximately 0.4%, bringing it back to over 51% at this time. This translates to around 51% of the total crypto market capitalization.
Bitcoin Market Cap Maintains a $1 Trillion Threshold
Analysis of the crypto market capitalization trend on CoinMarketCap revealed that it stood at around $2.3 trillion at press time. Recent data indicated a reduction in market cap over the past few weeks, with a decrease of over 2% in the last 24 hours. Declines in the prices of various crypto assets primarily drive the decrease. Also, following a period in 2022 where the market capitalization fell below the $2 trillion mark, it re-entered this range around March and has since remained there, albeit with fluctuations. Further examination of the data highlights that out of the total $2.3 trillion market capitalization, Bitcoin accounts for over $1.2 trillion. Also, despite market fluctuations, the price of Bitcoin has managed to hover around $60,000. This ensured that its market capitalization remained above the $1 trillion mark for an extended period, allowing Bitcoin dominance to remain above 50%.
BTC Makes Push Above $62,000
AMBCrypto’s analysis of the Bitcoin daily timeframe price trend indicated that it has surged above the $62,000 price zone. It was trading at around $62,500 at the time of writing, with an increase of over 1%. This marked the first return to this price range in the last three days. Should this momentum persist, BTC may test its short-term resistance level at around $64,000. However, it’s worth noting that it remained in a bear trend according to its Relative Strength Index (RSI) at press time.
Conclusion
Despite recent market fluctuations and declines, Bitcoin continues to assert its dominance in the crypto market, maintaining a market cap above the $1 trillion mark and a price range above $60,000. As the leading cryptocurrency continues to navigate the volatile crypto landscape, its sustained dominance could potentially influence the overall trend of the cryptocurrency market capitalization.
