The market share of the top crypto asset Bitcoin is reportedly moving toward 60%. As per Vivien Lin, the Head and CPO of BingX, this dominance of Bitcoin ($BTC) raises speculations about the altcoin sector. The executive took to social media to reflect on the current market scenario in this respect.
Bitcoin Dominance Nears 60% – What Does It Mean for Crypto? #Bitcoin’s crypto market share is approaching 60%—its highest since April 2021! This draws in investors, especially as people consider Bitcoin a “safe” choice during uncertain times. But what does this mean for… pic.twitter.com/E5pZlSxUmY
— Vivien Lin @ BingX (@Vivien_BingX) November 7, 2024
Bitcoin Leads in Market Capitalization, Contributing to Mixed Implications for the Altcoin Sector
Vivien Lin mentioned that Bitcoin’s supremacy in the case of market capitalization signifies a resilient move toward the top asset. Particularly during market uncertainty, many consider Bitcoin a “safe haven.” This could create mixed implications for the rest of the digital assets, particularly altcoins.
The rise in the market share of Bitcoin has reached approximately 58.6%. The macroeconomic factors such as anticipated policy changes from the Fed and potential cuts in the interest rates are also fueling this increase. The respective events have heightened Bitcoin’s demand in the form of a stable asset specifically in uncertain periods. This pushes its price near the psychological threshold of $75,000. For several investors, the stability of Bitcoin amid volatile phases turns it into a dependable choice.
Analysts point out that Bitcoin’s present price level strengthens its status as “digital gold” within the crypto market. It appeals the institutional investors along with traditional finance segments. In this respect, Bitcoin has proved a hedge against economic instability and inflation.
Capital Flow Shifts from Altcoins to Bitcoin, Potentially Leading to a Lowered Liquidity for Altcoins
According to the report from BingX, the spike in the market share of Bitcoin has resulted in an alarming situation for altcoins. In this respect, the capital flow is shifting from minor assets. Several altcoins depend on innovative applications to allure investments. Nonetheless, Bitcoin’s supremacy can halt this growth, paving the way for a lowered liquidity.
