Bitcoin has achieved a significant milestone in the cryptocurrency market by reaching a 50% dominance for the first time in two years.
The measure of Bitcoin’s share in the total crypto market cap surpassed the 50% mark on June 19, settling at 49.9% at the time of this publication, as reported by TradingView data.
This achievement signifies that Bitcoin alone accounts for half of the entire crypto market’s valuation, which currently stands at $1.1 trillion.
With a market capitalization of $519 billion, Bitcoin’s dominance has seen a remarkable increase of over 10.5% since November 27, 2022. This surge can be attributed to investors seeking Bitcoin as a safe haven asset following the FTX crisis and growing regulatory scrutiny in the United States.
While Bitcoin’s dominance has soared, Ether (ETH), the second-largest cryptocurrency, has maintained a steady market share of around 20% for nearly a year. Together, the combined value of Bitcoin and Ether now represents approximately 70% of the total crypto market.
Michael Saylor, co-founder of MicroStrategy and a prominent advocate for Bitcoin, predicts that Bitcoin’s market dominance will surpass 80% in the coming years.
He anticipates that increasing regulatory pressure from the Securities and Exchange Commission (SEC) will lead to the fading away of stablecoins and most other crypto assets. According to Saylor, the industry will eventually be rationalized into a Bitcoin-focused market with only a handful of other Proof of Work tokens.
Saylor attributes the lack of significant institutional investment in the crypto space to the confusion and anxiety caused by the existence of 25,000 alternative cryptocurrencies that position themselves as alternatives to Bitcoin.
He emphasizes that Bitcoin is universally recognized as the digital commodity of the industry, drawing attention to SEC Chair Gary Gensler’s classification of Bitcoin as a commodity. In contrast, the SEC has designated 68 other cryptocurrencies as securities.
At the time of writing, Bitcoin is trading at $26,746, reflecting a 1.5% increase in the past 24 hours, according to the Cointelegraph Price Index. Despite a sense of fear prevailing in the crypto market, Bitcoin’s value has grown over 3% in the last week.
Crypto research firm Santiment suggests that the recent surge in Bitcoin’s price can be attributed to the announcement of Blackrock, a financial investment behemoth, filing for a Bitcoin spot ETF. This development has played a significant role in driving Bitcoin’s upward price momentum in recent days.
Bitcoin’s attainment of a 50% market dominance is a significant milestone, highlighting its position as the leading cryptocurrency and its growing influence within the broader crypto market.
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