Bitcoin market dominance skyrockets as price dip threatens altcoins

Bitcoin market cap dominance has hit a new high level that it last witnessed three years ago. Consequently, altcoins are feeling the pressure of this new feat on their prices. According to data from TradingView, BTC hit 56.3% in the share of the entire cryptocurrency market cap. Coming into the weekend, the price of BTC took a beating after a massive liquidation brought it close to $65,300.

Bitcoin dominance clinches 3-year high

Market data has shown that Memecoins have not fared any better. Memecoins in the top 20 cryptocurrencies in the market have witnessed a decline of around 15%. With the price movements, altcoins have surrendered the market share to Bitcoin, with the recent surge marking the most recent BTC dominance since April 2021. The crypto community on Twitter has waded into the market discussions.

According to a trader on X (formerly Twitter), the BTC dominance chart is impressive because new altcoins enter the crypto market every day. Trader Daan Crypto Trades also discussed the difference in the movement between BTC and other altcoins over the last few days. He noted that the hit on Bitcoin was quite minimal and the downside is quite negligible. He added that the real damage was done in the altcoins market where billions in Open interest were wiped out.

Market insights and community reactions

Bitcoin has over the years, often experienced a dominance breakout in its early stages, with altcoins eventually catching on when the leading asset consolidates. Although altcoins have done quite well, they have not yet hit that stage for a prolonged time. However, crypto trader Mikybull Crypto has argued that all that is about to change very soon. He noted that the current market cap of altcoins is following the trends of the previous years.

Mikybull Crypto also highlighted that this is the same trend where altcoins will see a massive upward surge coupled with Bitcoin’s dominance declining.

The trader shared a chart showing the dominant trend of Bitcoin and altcoins in 2020. Notably, the chart showed the period that Bitcoin escaped its macro trading range under $20,000.