💦💦What Does Bitcoin Dominance Tell Us? Why Is It Increasing? Here is the Latest Report 💦💦

According to a report published by Kaiko Research, Bitcoin's market dominance has reached 54.9% of the total cryptocurrency market, reaching its highest level since April 2021.

This increase shows that Bitcoin, which outperforms other digital assets during periods of market uncertainty, has increased its impact, especially on the top 50 altcoins. During the sudden market sell-off on August 5, which occurred as a result of an unexpected increase in interest rates in Japan, the cumulative volume delta (CVD), which measures Bitcoin's buying and selling pressure, remained positive on US stock exchanges. During this process, altcoins remained under intense selling pressure, while Bitcoin's role as a "safe haven" for investors in turbulent times became even more evident.

Kaiko Research analysts stated that Bitcoin’s CVD was strongly positive between August 4-6, while the top five altcoins struggled with widespread selling on major exchanges. “Bitcoin’s ability to maintain positive buying pressure while altcoins experience sharp declines makes it a preferred asset during selling periods,” the analysts commented. The launch of spot Bitcoin ETFs in the US in January 2024 was also a significant factor in increasing Bitcoin’s dominance. According to the report, the entry of these ETFs into the market attracted the attention of institutional investors who see Bitcoin as a lower-risk investment vehicle compared to altcoins. This influx of institutional capital strengthened Bitcoin’s position despite altcoins facing greater volatility and higher risk premiums in a challenging macroeconomic environment. The Kaiko report shows that the top five altcoins, especially those with high market caps, faced significant pressure during the August sell-off, and uncertainty around these assets continues.