💥💥💥 #bitcoin☀️ dominance hits 58% amid altcoin, #StockMarket #bloodbath
Bitcoin Dominance Reaches New High Amid Market Turmoil
Bitcoin's ($BTC ) dominance hit a yearly high of 58.1% on August 5 during a sharp market sell-off, with BTC dropping 10% and Ether ($ETH ) plummeting 18% within two hours. Analyst Tony Sycamore of IG Markets attributes this decline to recession fears, geopolitical tensions between Israel and Hezbollah, and the US's increased military presence in the area.
The broader sell-off also impacted Asian markets, with Japan's Nikkei 225 dropping 8% and trading halts in South Korea, contributing to a global risk-off sentiment.
Ether and other altcoins experienced significant losses, with ETH down 30% in the past week, and major altcoins like Solana (SOL), BNB, and XRP falling 35%, 25%, and 21% respectively, according to CoinGecko.
Sycamore noted that Ether's decline is exacerbated by the large number of tokens and ecosystems built on its network, highlighting sell pressure from crypto trading firm Jump Crypto.
Looking forward, the Institute of Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) report is seen as a potential market-moving event. A negative report could indicate further downside for risk assets, while positive numbers might stabilize prices.
Over the past 72 hours, the total cryptocurrency market capitalization has dropped by $500 billion, marking the largest three-day sell-off since August 2023.
Source - cointelegraph.com
