- Bitcoin’s market dominance is soaring.
- Statements from a veteran trader have sparked discussions about the implication of altcoins.
- An analyst believes the recent trend is linked to recent regulatory actions in the U.S.
Market dominance is a closely watched metric in the crypto space, as it typically points to the flow of capital.
While Bitcoin has historically dominated this metric, its dominance has declined in recent years as more altcoins have burst into the scene. But this trend appears to be reversing as the market faces growing uncertainty due to recent regulatory actions.
Sponsored
In the past 24 hours, Bitcoin’s market dominance has surged to two-year highs. Amid this surge, statements from veteran trader Peter Brandt have sparked discussions about the implications of Bitcoin’s growing dominance over altcoins.
Peter Brandt Releases Altcoin Warnings
Bitcoin’s dominance has reached back above 50% for the first time since May 2021, suggesting that the leading digital asset is seeing an increase in capital inflows compared to the rest of the crypto markets.
At the time of writing, the metric is around 50.06% after breaking an over-24-month-long resistance level.
In April, veteran trader Peter Brandt suggested that should Bitcoin’s Dominance break the months-long resistance, it could have damaging implications for altcoins.
“My bias is that Bitcoin will bury all pretenders BTC. Eventually, there will be only one ‘King of the Hill,’ and it will be Bitcoin,” he asserted.
In a tweet on Monday, June 19, the veteran trader reiterated this view.
These sentiments have sparked significant discussion following the developments in the last 24 hours.
Are Altcoins in Trouble?
While several pro-Bitcoin analysts have quickly aligned with Brandt’s views, others have begged to differ. Financial markets analyst Joey Keasberry argued that the industry’s growth could easily outpace Bitcoin.
Orbis Capital founder Jose Luis Rosas Luna pointed out that despite the growth in Bitcoin dominance, it was still in a downtrend.
Speaking with DailyCoin, CoinShares Head of Research James Butterfill suggested that the recent growth in Bitcoin’s market dominance was due to regulatory actions. With the focus largely on altcoins and United States exchanges forced to delist these assets, Butterfill suggests that investors are fleeing to Bitcoin for safety.
Still, the analyst insists the recent trend does not spell doom for altcoins.
"I donโt think it spells doom for all altcoins, bitcoins dominance is in some ways cyclical, and altcoins with solid investment thesis will bounce back," he asserted.
Recently, the U.S. Securities and Exchange Commission has switched crypto enforcement actions into high gear with lawsuits against Binance and Coinbase, labeling several popular altcoins, including ADA, SOL, and MATIC, as unregistered securities.
On the other hand, the world’s largest asset manager, BlackRock, has revealed intentions of launching a spot Bitcoin exchange-traded fund in the U.S.
On the Flipside
- Capital allocation will likely continue to change with changing market conditions.
- Bitcoin formed its last all-time high with its market dominance at around 41%, suggesting growing market dominance is not directly correlated with price.
Why This Matters
The shift in market dominance further highlights the effects of recent regulatory actions on market sentiment.
Check out DailyCoin’s regular updates on Bitcoin’s price action to better understand what is happening with the digital asset:
DailyCoin Bitcoin Regular: BlackRock ETF? Community Sentiment and Price Analysis
Binance rescinded its registration with the Financial Conduct Authority but claimed to remain committed to its U.K. Plan. Find out more:
Binance Claims Commitment to U.K. Plan Remains, Despite FCA Deregistration
