The upsurge in the cryptocurrency market has continued, as the crypto market cap has hit a new all-time high, going above $775 billion. Market experts have predicted that with the current market performance, crypto market cap could exceed the $1 trillion threshold earlier than expected.
Experts have also predicted that 2021 will be a very positive year for Bitcoin (BTC) and other altcoins.
The Crypto market is driven by the rise in Bitcoin price
As expected this time, Bitcoin dominates the market with 71% of the entire crypto market cap.The recent rise of the crypto market cap is largely driven by the rise in Bitcoin price and other cryptocurrencies.
Bitcoin’s price is inching towards the $30,000 mark, with a market cap of nearly $550 billion.
As the crypto market is closing the year on a strong footing, many experts have already predicted even better growth in the crypto industry at least for another few months.
On the other hand, the second-largest cryptocurrency Ethereum (ETH) still maintains its second position in terms of dominance and market cap. It provides 11% of the market cap while other cryptocurrencies contribute the remaining 17.6% of the market cap.
However, the more interesting fact about this latest all-time high is not the increased market cap but the market share of Bitcoin this time.
In the previous all-time high when the crypto market reached $750 billion in 2018, Bitcoin performed relatively lower than other cryptocurrencies.
Then, Bitcoin’s market share was only 35%, with the other cryptocurrencies taking a 65% share of the market.
The dominance of Bitcoin has been traced to the influence of the U.S. Securities and Exchange Commission (SEC), especially in the areas of altcoins. The SEC’s regulatory efforts have reduced the establishment of more altcoins, which could reduce the sole attention given to Bitcoin at the moment.
Additionally, institutional investors have shown increased interest in Bitcoin rather than other cryptocurrencies. This has also contributed to the unfair dominance of Bitcoin over other cryptocurrencies, as crypto proponents have observed.
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