Bitcoin domination rising back above 45%
According to the latest chart provided and calculated by Tradingview, Bitcoin has returned to a level of crypto market dominance it last saw at the end of October 2021.
The first cryptocurrency, or “grandfather,” as it is called by many crypto enthusiasts, controls 45.3% of the entire crypto market, showing 9% growth in dominance over the last two weeks.
Over the past 6 months, altcoins have gradually snatched Bitcoin’s share of the crypto market, but when it’s time to take risks, we see Bitcoin taking its toll. Such a move is not surprising, as Bitcoin has always shored up investors’ funds during times of market turmoil, acting in instances such as Gold 2.0, which many see as such.
Of course, with monetary policy tightening, the U.S. stock market gradually deflating and the looming recession in many developed countries on the horizon, this is not the limit to the market share growth of the most famous cryptocurrency.
But at the same time, the growing dominance does not tell us that Bitcoin does not face all these risks. It’s just that the instrument itself seems more reliable, which it has repeatedly proven, compared to other digital assets.
All the more, due to the growing panic in the stablecoin sector, Bitcoin remains a favorite safe for storing funds for hardcore crypto enthusiasts and fiat opponents.
Uncomfortable correlation
Expanding on the theme of the upcoming global financial crisis, mentioned above, and Bitcoin’s role in it, it is important to consider the correlation between crypto and stock markets, which has particularly intensified the last year due to the arrival of large companies with huge capital. On the one hand, this is extremely detrimental to crypto, but on the other hand, it makes it an institutionalized phenomenon and a player in the financial markets in its own right.
In this regard, crypto investors find themselves facing a dilemma: Which is better? To play by the rules of traditional finance, pumping incredible capital and at the same time taking all their risks? Or to be independent, in the underground, but without the interest of the crowd and large injections?
