Bitcoin [BTC]’s big boom is here? Market dominance at 2018 high

The market king remains at an undoubted dominance as of yet. Bitcoin [BTC], which has left investors in a tizzy after its bull run last week, continues to climb the price mountain. It is currently trading at $7965 after breaking the $7000 resistance and continuing to trade above the limit without dipping down below. With the current momentum, it could breach the $8000 mark soon.

Bitcoin 7-day price graph | Source: TradingView

Bitcoin 7-day price graph | Source: TradingView

Moreover, it is important to note that while the price of the coin continues to make HODLers rejoice, the market dominance of Bitcoin is at a whopping 47.4%. This is a far cry from the rest of 2018, where the coin struggle to keep 40% dominance of the market. For all intents and purposes, over 47% of the market share is now held by Bitcoin’s market cap.

The market seems to have seen a lot of liquidity flow into Bitcoin especially, as the market dominance for the coin is the highest it has been this year. Ever since the drop in December, Bitcoin has struggled to regain the 70%+ dominance it had before that. The road to 50% seems to suggest that preferences are towards Bitcoin.

This gives every other token a measly 53% of total market capitalization to distribute among themselves. The second largest market dominance behind Bitcoin is Ethereum [ETH], but it still lags behind the master of market cap.

Stacked chart of Bitcoin [BTC], Ethereum [ETH] and XRP [XRP] market dominance | Source: CoinMarketCap

Stacked chart of Bitcoin [BTC], Ethereum [ETH] and XRP [XRP] market dominance | Source: CoinMarketCap

Ethereum is at a 16.10% market dominance, more than 30% lower than Bitcoin’s.  The XRP token comes in third place for market dominance, with a further reduction in percentage from Ethereum’s to a measly 6.1%. Currently, over 69% of the market is dominated by these 3 coins.

Moreover, most other popular cryptocurrencies see a trading pair with Bitcoin. For example, XRP/BTC is a popular pairing, with the price being the amount of XRP in the current price of Bitcoin. This results in Bitcoin leading the market, especially during bull and bear runs. This also ensures that Bitcoin will be traded.

Experts say that this point to the consolidation of the market. Iairus Germund, a market analyst stated:

“The dominance of Bitcoin over the market just shows how much the market has consolidated. Money from altcoins and other bad investments are flowing into Bitcoin, which has higher attention since its recent price gain. Moreover, there might be other factors at play, including institutional investors.”

Elias Yami, a cryptocurrency enthusiast and analyst, stated:

“Regulatory clarity is slowly being reached, especially in Bitcoin. Institutional investors are most likely to enter the market using Bitcoin as an onramp, due to its easy availability and amazing liquidity. Moreover, the talks of a Bitcoin ETF has many excited for the price to go higher. For now, Bitcoin exists as the ‘safest investment’ option for many institutional investors.”

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