Bitcoin’s dominance in the crypto scene has nosedived as the leading cryptocurrency continues trading on shaky grounds.
Market analyst Ali Martinez pointed out:
“Bitcoin dominance fell below 39% for the first time in four years. With its Merge upgrade, Ethereum appears to have taken the spotlight. Cardano is also gaining some traction with its Vasil hardfork.”
This is why the BTC dominance at low levels is due to the anticipated merger on Ethereum Network and the increasing importance of stablecoins.
Arcane Research is highlighted in the weekly update stated:
“An essential caveat of Bitcoin dominance sitting close to an all-time low is that stablecoins are far more significant now than the last time Bitcoin showed this low dominance. This excludes the USDT and USDC from the equation, we see that Bitcoin still makes up half of the crypto market.”
Additionally, this trend is occurring in a dormant BTC supply spike, which can be interpreted as bear markets. Glassnode provides on-chain insight explained:
“The volume of Bitcoin supply that has remained unspent for at least 1yr has reached a new ATH of 12.589M BTC. This represents 65.77% of total circulating supply. Increasing dormant supply is a characteristic of Bitcoin bear markets.”
Bearishness in the Bitcoin market continues to bite. The price of Bitcoin fell below $19K, which was last seen in July.
According to Reuters, the top cryptocurrency dropped by 5.64% during intraday trades to $18,767 CoinMarketCap.
Bitcoin dropped to $20,000 recently due to revelations that tightened macroeconomic conditions would continue to play out. Blockchain.News reported.
The decision was made by Federal Reserve (Fed) has been driving bearish momentum in crypto markets by trying to contain runaway inflation through increasing interest rates.