- Bitcoin’s attempts at price recovery faced challenges again over the last 24 hours, resulting in a minor decline.
- A significant amount of Bitcoin remains unsold, indicating a shortage of interested buyers.
- Recently, Bitcoin’s (BTC) price experienced a dip, even though there was an effort in the previous trading session to close the gap.
An in-depth analysis on Bitcoin’s (BTC) dominance and market movements amidst recent price fluctuations and OTC reserve trends.
BTC Dominance Wanes Amidst Market Turbulence
Bitcoin’s share of the cryptocurrency market has recently undergone a significant reduction as it struggled to hold its value.
Observations from COINOTAG revealed that BTC dominance was above 54% at the close of trading on June 24th, but decreased to approximately 52.28% by the end of the day on June 25th.
This swift drop presents evidence that while Bitcoin’s valuation was declining, several altcoins were capturing more market share and performing better.
Shifting Market Power
As of now, Bitcoin’s dominance has slightly rebounded but remains around the 53% mark, still signifying that it accounts for over half of the total cryptocurrency market cap.
Bitcoin’s market cap stood at over $1.2 trillion, while the whole cryptocurrency market’s cap was about $2.27 trillion. Ethereum (ETH) followed, making up nearly 18% of the total market cap.
Bitcoin vs. Other Assets
The price and performance of Bitcoin greatly influence the distribution of market capitalization amongst various cryptocurrencies.
Recent data from CryptoQuant shows an uptick in the amount of Bitcoin held within Over the Counter (OTC) reserves.
Increase in Bitcoin Reserves
Over the past six weeks, more than 103,000 BTC, valued at over $6 billion at current prices, have been added to these reserves, marking a notable rise.
This accumulation points to a heightened OTC reserve balance and suggests there has been a lack of buyers, potentially due to the recent fall in Bitcoin’s price.
This cautious approach by larger market participants during this period of price volatility is reflected in the ongoing increase in OTC reserves.
Conclusion
In conclusion, Bitcoin sees a continuous battle to maintain its market dominance and value amidst turbulent market conditions. The rise in OTC reserves highlights a cautious stance among key market players, potentially influenced by the recent fluctuations in BTC’s price. As the market evolves, the performance and dominance of Bitcoin will continue to shape the broader cryptocurrency landscape.
