- Bitcoin has gained a 50% market share in the crypto space for the first time in 2 years.
- While the price surge has become a reason for delight to many, it has also compelled experts to investigate the reasons behind it.
Bitcoin, the ultimate hero of the crypto space, has maintained its dominance right from its inception. Though its price has nosedived multiple times in the past, it’s seeing a purple patch right now. Recently, its total market cap hit the mark of 50%, a benchmark it has set for the first time.
Finding out the reasons behind it
As per the data provided by TradingView, the original cryptocurrency achieved this feat on June 19 at 6 pm UTC. With this, Bitcoin is now contributing to half of the total market valuation of crypto, which is $1.1 trillion. According to Coingecko, Bitcoin’s market capture is $519 billion right now.
Reportedly, a number of reasons have led to this occurrence. Most importantly, the growing scrutiny over crypto assets exchanges in the US and investors’ quest for a safe investment option after the FTX scam. All of this has led to Bitcoin’s market dominance which has foregone 10.5%.
The other major cryptocurrency by price and market cap is Ethereum. However, Ethereum’s price has been steady around the 20% mark throughout the year so far. The combined value of Bitcoin and Ether makes up 70% of the total crypto market.
Michael Saylor, the Bitcoin advocate and co-founder of MicroStrategy even predicted that Bitcoin’s market dominance will top 80% in the coming years. He attributed it to the growing surveillance that’s making stablecoins and other crypto assets less reliable for crypto investors.
In addition to that, he holds the lack of “institutional money” responsible for this too. According to him, the outburst of a large number of crypto assets has brought a lot of insecurity in the market. They have also paved the way for scams and made Bitcoin the obvious choice for everyone.
Bitcoin is globally-recognized and is accepted as a payment mode as well by many industries, he added. Also, Saylor emphasized that Bitcoin is the only cryptocurrency that the current SEC chairperson Gary Gensler has termed a commodity. Furthermore, the SEC has added 68 cryptocurrencies to its list of securities.
As per the data provided by Cointelegraph Price Index, Bitcoin is currently trading at $26,746 with a rise of 1.5%. Based on the reports, its value has seen an increase of 1.5% in the last 24 hours and 3% since the last week. Notably, it happened regardless of the growing fear and insecurity in the crypto markets.
According to the crypto research firm Santiment, the investment giant Blackrock’s filing for the Bitcoin spot ETC is one of the major reasons behind the soaring of price.
No one knows how long this rally will continue. However, if the reasons mentioned above remain persistent, then Bitcoin will probably maintain its dominance for a long time. Also, we’ll have to see whether the government-backed CBDC will make an impact on it whenever it is rolled out. So there are plenty of factors at play here which will determine the rise or decline in Bitcoin’s price. Guess we’ll have to wait and see how the crypto arena unfolds.