Bitcoin, the leading digital asset, continues to solidify its dominance in the cryptocurrency market, now commanding an impressive 56% of the total market capitalization.
This surge in dominance, rising from 38% in November 2022 to 56% today, reflects the unwavering confidence of Bitcoin’s long-term holders, who have been steadily accumulating BTC beneath the surface.
#Bitcoin, as the leading digital asset, continues see its dominance expand, now commanding a staggering 56% of the total market capitalization.
Supporting this, Bitcoin Long-Term Holders remain steadfast in their conviction, with significant accumulation pressure below the… pic.twitter.com/RQqSiHzexB
— glassnode (@glassnode) August 20, 2024
While Bitcoin’s market share has expanded, Ethereum, the second-largest cryptocurrency, has seen a slight decline in its dominance, dropping from 16.8% to 15.2% over the same period. Despite this, Ethereum’s position has remained relatively stable over the past two years.
In stark contrast, Stablecoins and the broader Altcoin sector have experienced more significant declines.
Stablecoin dominance has plummeted from 17.3% to 7.4%, while Altcoin dominance has dropped from 27.2% to 21.3%. These shifts highlight Bitcoin’s increasing dominance and the growing preference among investors for the leading cryptocurrency.
#Bitcoin Dominance has surged from 38% in Nov 2022 to a notable 56% today. Meanwhile, #Ethereum, the second-largest asset, saw its dominance decline by 1.5%, remaining relatively stable over the past two years.
In contrast, Stablecoins and the broader Altcoin sector experienced… pic.twitter.com/Aa23pN2aRa
— glassnode (@glassnode) August 21, 2024
As the market prepares for the next Bitcoin halving cycle, which historically sparks a bull rally, the anticipation for a strong performance in Q4 is building. Whales, who play a crucial role in market movements, are unlikely to allow Q4 to be a dull period with flat year-over-year performance.
In the last #Bitcoin halving cycle, the bull rally began in Q4. Whales won't let Q4 be boring with a flat YoY performance. pic.twitter.com/LIWH53OpkD
— Ki Young Ju (@ki_young_ju) August 21, 2024
Mt. God Moves Another Huge BTC Into CEX
Adding to the market dynamics, Mt. Gox, the now-defunct Bitcoin exchange, has recently deposited 1,265 BTC (worth $75 million) to Bitstamp. Since July 2024, Mt. Gox has transferred a total of 107,958 BTC ($6.81 billion) to various exchanges and unknown addresses as part of its creditor repayment process. Despite these massive transfers, Mt. Gox still holds 32,898 BTC ($1.95 billion) across 28 known addresses.
🚨🚨 Mt. Gox just deposited 1,265 $BTC ($75M) to #Bitstamp 30 minutes ago.
Since July 5, 2024, Mt. Gox has transferred out a total of 107,958 $BTC ($6.81B), including:
• 62,935 $BTC ($4.12B) to #Bitstamp, #SBIVC, #Kraken, #OKX, and #Binance for creditor repayments;
• 45,023… pic.twitter.com/9GfFELGNlA
— Spot On Chain (@spotonchain) August 21, 2024
Moreover, the Bitcoin spot ETF market has seen significant activity, with a total net inflow of $88.06 million on August 20. While Grayscale’s GBTC ETF experienced an outflow of $12.81 million, BlackRock’s IBIT ETF saw an inflow of $55.43 million, and Ark Invest and 21Shares’ ARKB ETF recorded an inflow of $51.91 million.
On August 20, the total net inflow of Bitcoin spot ETFs was $88.0606 million. Grayscale ETF GBTC outflow was $12.8124 million, BlackRock ETF IBIT inflow was $55.4320 million, and Ark Invest and 21Shares ETF ARKB inflow was $51.9137 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) August 21, 2024
As Bitcoin continues to dominate the market and attract strong institutional interest, the stage is set for a potentially explosive Q4, with market dynamics heavily favoring the leading cryptocurrency.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: igorigorevich/123RF // Image Effects by Colorcinch
