Key Takeaways
- Bitcoin’s market cap dominance is holding above 45% for the first time since October 2021.
- The top crypto’s dominance over the market has surged since Terra’s implosion last week.
- Bitcoin has historically dominated the market during bear cycles.
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Bitcoin has historically dominated the cryptocurrency market during downturns.
Bitcoin Dominance Rallies
Although the crypto market looks weak, Bitcoin is proving that it’s still “the King.”
The number one cryptocurrency has seen its market cap dominance soar this week, rising to 45.27% Thursday. Bitcoin’s dominance over the market last topped 45% in October 2021, weeks before it hit an all-time high above $69,000.
Market cap dominance refers to the proportion of the market one asset represents. Bitcoin has historically been dominant during bear cycles, but it tends to make way for other assets such as Ethereum in bullish market conditions. Bitcoin’s dominance topped 70% shortly after it broke $20,000 for the first time in December 2020, but then faced a bleed throughout much of 2021 as other assets soared. Bitcoin’s dominance has been increasing throughout this year and has rallied over the past week.
The crypto market has had a shaky month so far, with the global market cap plummeting from around $1.8 trillion to $1.3 trillion. Amid the volatility, Bitcoin’s performance has been weak. The number one crypto posted its eighth consecutive weekly…
