Bitcoin

Key Insights:<ul><li>The crypto market has faced rapid fluctuations with both significant rallies and corrections this week.</li><li>Bitcoin achieved a new all-time high of $89.9K, while Ethereum broke past $3,000, and Dogecoin overtook both XRP and USDC in market cap.</li><li>Altcoins have recently corrected sharply, while Bitcoin has remained steady, pushing its market dominance to nearly 60%.</li></ul>Bitcoin Market Dominance Approaches 60%Bitcoin recently reached an all-time high of $89.9K, stabilizing around $86K at press time. This surge has positioned Bitcoin as one of the week’s biggest gainers, pushing the overall crypto market cap near $3 trillion due to its high market share.Currently, Bitcoin&#39;s market dominance is around 59.8% and is projected to hit 60% by week’s end, as weaker altcoin performance and strong investor support for Bitcoin continue.Bitcoin’s dominance has evolved in four key phases over the past decade.Bitcoin Dominance from 2013 to 2024In the early years, analysts believed Bitcoin’s dominance would decline as the crypto market matured, a trend that held true until 2018, when Bitcoin’s dominance bottomed at 34%. By 2019, Bitcoin saw a significant rally, boosting its dominance from 34% to 70% as it surged from $3.6K to $12.1K. This growth gradually subsided starting in 2021.From early 2021 to late 2022, Bitcoin’s market share fell from 69.2% to 38.3% amid the crypto winter and Bitcoin ETF launches. The current phase, however, has been marked by strong growth, with Bitcoin’s price rising from around $16K in early 2023 to nearly $90K by late 2024, lifting its dominance from 38% to 60%.This recent surge has been driven by institutional interest, including Bitcoin ETFs and increased investments from major firms, a factor not seen in prior phases. However, Bitcoin’s dominance may have peaked as its price stabilizes around current levels.Why Are Altcoins Struggling?While altcoins saw short-term gains recently, including Ethereum surpassing $3,000 and Solana hitting its 2024 high of $210, these assets quickly corrected after their peak.The reasons for these corrections will likely be clearer by week’s end. However, it appears profit-taking played a major role. Bitcoin enjoys sustained support from institutional investors, while altcoins often lack such commitment, leading to volatility.Notably, Ethereum and XRP diverge slightly from this trend. Ethereum has faced consistent selling pressure from whales, faltering ETF momentum, and declining utility. XRP, despite backing from financial giants like JP Morgan, fell sharply amid current corrections. Unlike Bitcoin, XRP is primarily used for transactions and lacks status as a reserve asset, exposing it to greater volatility. Regulatory pressures from the SEC also continue to cloud XRP&#39;s outlook, despite some recent legal wins.Will the Market Hold Current Levels?The market may rebound to recent highs, as capital inflow has remained steady over recent weeks. This consistent influx is largely attributed to the Federal Reserve&#39;s recent 0.75% rate cut, which has directed substantial liquidity into crypto, pushing the market cap to $3 trillion.Historically, markets have recovered from profit-taking corrections like those seen this week. During these rally-driven spikes, derivatives data tends to become highly volatile, leading to rapid fluctuations, as observed in recent days.This volatility is expected to subside within the next two weeks, with the market likely to stabilize at higher levels by late November 2024.

Bitcoin Dominance Climbs to Multi-Year High as Altcoins Experience Sharp Corrections

VoiceOfCrypto (VOC)

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