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Langgam Pos - Bitcoin's market capitalization has surged to an impressive USD 1.27 trillion, or approximately IDR 20,685 trillion, according to CoinMarketCap data. This represents a substantial 55.05% of the total cryptocurrency market, marking the highest level of dominance Bitcoin has seen in three years.
In contrast, the entire cryptocurrency market is valued at USD 2.43 trillion, with Ethereum commanding 16.5% of this market, equivalent to USD 389 billion. The recent increase in Bitcoin's dominance is somewhat surprising, given that, during bullish market phases, altcoins typically outperform Bitcoin.
Earlier this year, meme coins experienced a resurgence as Bitcoin reached new all-time highs, but other cryptocurrencies did not benefit as significantly. Meltem Demirors, former Head of Strategy at CoinShares, highlighted key factors influencing this shift via her social media account on X.
“ETF flows have fundamentally altered market dynamics. Bitcoin gains are no longer being funneled into altcoins and other crypto assets,” Demirors noted in a CoinMarketCap report on August 2, 2024.
Despite Bitcoin's growing dominance, the market capitalization of Tether (USDT), the world’s largest stablecoin and the third-largest cryptocurrency after Bitcoin and Ethereum, has also increased. Stablecoins, which are backed by fiat currencies, are often excluded from Bitcoin dominance metrics due to their different value models.
While the performance of altcoins has been underwhelming, there is optimism about their potential rebound. Ki Young Ju, CEO of CryptoQuant, observed on Tuesday that major Bitcoin holders, or “whales,” are preparing for the next altcoin rally, as indicated by a rise in limited buy orders for non-Bitcoin and non-Ethereum assets.
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