Bitcoin (BTC) is seeing some notable light in a bearish tunnel as the new week began: it’s dominance is up around 17% in the midst of a selloff, while it’s also among those coins that fell the least in the past 7 days and from their all-time highs (ATHs).
At 7:25 UTC, BTC is trading at 36,461, after it went up nearly 1% in a day. It is, however, down 21% in a week and 28% over the past month.
Bitcoin, as is well known, is the first coin per market capitalization, with USD 682.3bn at this time. And amid the selloff, its percentage of total market capitalization, known as dominance, has gone up around 17% in 7 days, as many other cryptoassets dropped against BTC.
More precisely, it increased from 39.1% recorded by Coinmarketcap.com on May 18 to 45.6% at the time of writing – meaning, it’s up by 6.5 percentage points. The highest it’s been in this period was 48.36% seen yesterday.
For context, BTC has been recording percentages in the 60s and low 70s since between January and March this year (and much higher before March 2017), sitting at 70% as 2021 began.
As for other coins in the top 10 by market capitalization, ethereum (ETH)’s dominance is the second-highest, standing today at 17.5%, down from 19% recorded on May 18. Others on the list have less than 4% each today, while the coins outside the top 10 have 19% dominance combined.
Furthermore, bitcoin is among the coins that dropped the least from their recently gained ATHs. It fell 43% in 40 days, from USD 65.028 (per Coinpaprika) seen on April 14.
The only top coin that dropped less is cardano (ADA) with nearly 40% in eight days since its ATH of USD 1.48. ETH follows BTC with a drop of 48% in little less than two weeks, from USD 4,365, confirming previous warnings that ETH has “notably more downside risk.”
Other coins in the top 10 fell between 55% (dogecoin (DOGE)) and 78% (XRP), though XRP is the only coin on the list that didn’t hit an all-time high since 2018. Otherwise, bitcoin’s forty days is the longest timeframe on the list, while others hit their ATHs between eight and sixteen days ago.
Loan Venkatapen, co-founder of Blocklabs Capital Management, told Bloomberg that while BTC “is not dying,” they still “expect productive blockchain assets such as Ethereum or Solana to challenge Bitcoin dominance in the coming months.”
Who is buying ?
According to Bloomberg, crypto hedge funds have been buying this latest dip, one of them being London-based investment manager MVPQ Capital. Its founder and CEO, Felix Dian, was quoted as saying that “we had kept dry powder,” and that they bought BTC at USD 35,000.
Charlie Erith, chief executive of ByteTree Asset Management, was quoted as saying that at USD 35,000, “we felt it’s a reasonable level at which to be adding,” noting that they don’t think “this is going to be a revisit of 2018,” when the prices crashed even more, starting a crypto winter.
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