Bitcoin now accounts for half of the cryptocurrency market capitalization, with its dominance surpassing 50% for the first time since April 2021.
The chart below shows that Bitcoin’s dominance has found a local bottom at 39.9% around November 2021. At this time, FTX and its native FTT token collapsed, sparking narratives around worthless altcoins and Ponzinomics.
Since then, BTC.D has been on an upward trend, jumping from 43.5% in mid-March to 47.7% as weakening banks pushed investor sentiment toward “hard assets.”
There was an even sharper rise in early June, from 47.4% to finish the first week of the month at 49.1%, as US regulatory enforcement actions tightened.
bitcoin is stable
according to reports crypto slate On June 12th, the Securities and Exchange Commission (SEC) enforcement action against Binance and Coinbase coincided with a further rise in Bitcoin’s dominance.
In separate filings, the SEC alleges that both exchanges violated securities laws by operating as unregistered exchanges and offering unregistered securities.
Across the two filings, 19 altcoins were designated as unregistered securities by the authorities. They were ATOM, BNB, BUSD, COTI, SOL, ADA, MATIC, FIL, SAND, MANA, ALGO, AXS, CHZ, NEAR, FLOW, ICP, VGX, DASH, and NEXO.
The above altcoins have suffered price drops. For example, BNB has experienced a 28% peak-to-trough drawdown since filing with the SEC. Similarly, ADA, the next largest altcoin named in the filing, experienced a 42% drop from high to low.
Bitcoin, meanwhile, has been relatively stable over the same period, dropping 8% in a peak-to-trough move triggered by the SEC enforcement action.
Adamant Research Editors Comment on Situation Tour Demester He said that while Bitcoin’s dominance indicator is flawed, the uptrend is still worth watching. He also added about the inevitable aspect of Bitcoinization.That’s because “cryptocurrency” scatters on the wind. And so he concluded by saying,
“People are finally learning to distinguish fool’s money from the real thing.“
However, as CoinShares reveals in its latest weekly report, this trend does not yet appear to exist for crypto ETP investments. Altcoin ETFs, including tokens such as Cardano (ADA) and Polygon (MATIC), saw inflows over the past week, while Bitcoin and Ethereum saw net outflows.