Cryptocurrency enthusiasts have been closely following Bitcoin’s market dominance, particularly in light of the recent surge in its price. Benjamin Cowen, founder of Into The Cryptoverse, recently shared his insights on the topic, suggesting that Bitcoin’s dominance may not return to its previous highs.
Cowen expressed doubts that Bitcoin’s market dominance will climb back to the 70% level seen in December 2020. Instead, he has set a target of 60% for Bitcoin’s dominance moving forward. Currently, Bitcoin’s dominance stands at 57.36%, marking a notable increase since mid-July and a significant rise of 11.20% since the start of the year.
The rise in Bitcoin’s dominance comes amidst major altcoin seasons, like the one observed in 2021, where Bitcoin’s dominance typically dips before gradually recovering. Cowen anticipates that this pattern will continue, with Bitcoin likely trending towards the 60% dominance mark from September to December.
Investors and traders often use Bitcoin dominance as a metric to gauge market sentiment and potential investment opportunities, especially in the realm of alternative assets like altcoins. In December 2020, Bitcoin’s dominance peaked at 70.23% before the price skyrocketed to $61,283 in March 2021, as per CoinMarketCap data.
Cowen also noted the evolving landscape of Bitcoin dominance, highlighting the impact of stablecoin market caps on the overall market dynamics. He recommended considering a combination of Bitcoin dominance and stablecoin Tether (USDT) dominance to gain a more comprehensive view of market trends.
In conclusion, Cowen’s insights provide valuable perspectives for investors navigating the cryptocurrency market. By staying informed about Bitcoin’s dominance and its implications for the broader market, investors can make more informed decisions about their investment strategies. Stay tuned to Extreme Investor Network for more expert analyses and insights into the dynamic world of finance and cryptocurrency.