Bitcoin has always dominated the cryptocurrency market. But for the first time since December 2017—when Bitcoin was valued at $20k per coin—Bitcoin dominance is nearing 70%. It’s a significant indicator of the current sentiment surrounding the world’s largest digital asset.
It also leaves a sizeable question mark over the future of the hundreds of altcoins that comprise this market.
Bitcoin Dominance Rating
Bitcoin’s market cap of $217.91 billion now covers 69.93% of the total cryptocurrency market according to NewsBTC.
Comparatively, at its lowest in January 2018, after Bitcoin price plunged from its all-time high, Bitcoin dominance was roughly 36.68%.
But especially amid 2019’s tumultuous financial backdrop, Bitcoin has built its dominance once again as investors speculate on the importance of Bitcoin being a non-governed asset.
Bitcoin will Be Tested in 2019/2020
The global economy is in the midst of certain crises, and this has brought Bitcoin’s necessity into question. For example, the US-China trade war, capital control in China, economic sanctions on Iran and Turkey, as well as hyperinflation in Zimbabwe and Venezuela are all wreaking havoc on the stock markets.
And while this is going on, many mainstream financial firms and retailers are beginning to cater to the growing number of Bitcoin traders. So it seems that while the global economy faces escalating crises, Bitcoin is becoming a more desirable asset; most likely because it is self-governed.
It also helps the coin that is the pioneering cryptocurrency, has always held the most value, and therefore holds a lot of real-world potential.
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The Takeaway
It is also likely that Bitcoin dominance is growing simply because the value of the currency is. In the last week, Bitcoin surged more than 30% – from $9,371 to as high as $12,320. This latest bull run was spurred on, once again, by an economic downturn. As Trump imposed further tariffs on $300 billion worth of Chinese imports, the People’s Bank of China reduced the price of the Chinese Yuan to under $7 a unit. This is its lowest in the last eleven years.
But where Bitcoin is concerned, this turmoil only caused the cryptocurrency to surge as traders begin to value the coin’s non-sovereign status.
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