Bitcoin Dominance Hits Two-Year Peak as Altcoins Sink –What Next for BTC Price?
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Last week, Bitcoin Dominance (BTC.D) reached 49.2% for the first time since April 2021. As concerned investors continue from embattled altcoins, crypto exchanges have experienced an uptick in demand for Bitcoin. As the BTC price gains momentum, will it clear the $27,000 resistance?
The global altcoin market capitalization is now down 13% since the US Securities and Exchange Commission launched its lawsuit against Binance on June 5th.
Amid heightened volatility and uncertainty in the altcoin markets, crypto investors have reallocated capital to seek refuge in Bitcoin’s (BTC) censorship resistance qualities. Will this push BTC’s price above the critical $27,500 resistance?
Bitcoin Dominance Has Hit a Two-Year Peak
Since June 5, Bitcoin Dominance (BTC.D) has gained two percentage points to graze 49.30% for the first time in two years. BTC.D tracks the percentage of the total global cryptocurrency market valuation that is made up of Bitcoin’s market capitalization.
The chart below illustrates how BTC.D increased sharply from 47.21% on June 5 to 49.25% on June 12.
A sharp rise in BTC Dominance indicates a shift in market sentiment and capital away from altcoins. BTC has gained the market as investors become less interested in altcoins.
Considering the 13% contraction of the altcoin markets within this period, it validates the hypothesis that crypto investors are increasingly selling off their altcoin holdings to purchase BTC.
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