- While Ethereum and other alternative cryptocurrencies have been retracing, Bitcoin’s overall market dominance has risen from 38% to over 50% at the beginning of 2023.
- Bitcoin’s superior performance compared to alternative cryptocurrencies has strengthened its reputation as a historical safe haven asset or at least a valuable diversification option for traditional market investments.
- As of the time of writing, Bitcoin (BTC) is experiencing a 0.3% increase with a price of $27,660 and a market capitalization of $538 billion.
Despite selling pressures, Bitcoin’s price has shown great resilience, leaving Ethereum and other altcoins behind: Dominance has increased!
Bitcoin Price Demonstrating Great Resilience
The world’s largest cryptocurrency, Bitcoin (BTC), is performing well despite significant selling pressure in the market. While Ethereum and other alternative cryptocurrencies have retraced, Bitcoin’s overall market dominance has risen from 38% to over 50% at the beginning of 2023.
Bitcoin’s superior performance compared to alternative cryptocurrencies has strengthened its reputation as a historical safe haven asset or at least a valuable diversification option for traditional market investments. This view is shared by Caroline Mauron, co-founder of digital asset derivatives liquidity provider OrBit Markets.
In total, Bitcoin has gained 66% in value this year, while Ether has increased by 32%. The difference becomes even more pronounced when looking at data from September 15, 2022, following the Ethereum network upgrade called the Merge, which had excited investors for months. Kaiko’s report states:
“In fact, since the Merge, Ether has largely underperformed the broader market, with both the ETH/BTC price and volume ratio showing a downward trend over the past year. Given that the negative market impact on Ether persists and traders historically shift toward Bitcoin, Ether’s underperformance is likely a result of this.”
At the time of writing, Bitcoin (BTC) is experiencing a 0.3% increase with a price of $27,660 and a market capitalization of $538 billion. On the 2-hour chart, Bitcoin’s price has experienced a drop from a symmetrical triangle chart pattern. Currently, the next support level for Bitcoin is $26,200.
Bitcoin Shining Amid Ethereum’s Weak Performance
The second-largest cryptocurrency by market capitalization, Ethereum, has experienced an approximately 18% decline since June, while during the same period, Bitcoin’s decline was roughly half of that. Ethereum’s total market capitalization share in the $1 trillion crypto market has dropped from 18.4% at the beginning of the year to 17.8%.
Concerns about Ethereum’s growth and future expectations have increased in recent weeks. Network activity and transaction fees have decreased, and the cryptocurrency’s supply has begun to increase again after several months of deflation. Concerns about centralization within the Ethereum network are also on the rise.
Despite the introduction of exchange-traded funds (ETFs) focused on Ether futures in the United States in October, their lack of significant interest has been seen as a failure in the argument that cryptocurrency adoption is inevitably expanding.
At the time of writing, the price of ETH has fallen below $1,590. Since February 2023, leading Ethereum holders, often referred to as “whales,” have been either selling at increasing prices or distributing approximately 5 million ETH, worth around $8.5 billion. What’s noteworthy is that this selling trend continues without any clear signs of a rapid shift towards accumulating ETH.
