Bitcoin’s Market Dominance Increases, Price Struggles around $36,000
In the latest crypto sell-off, BTC holders suffered huge losses. However, there was one bright spot for the holders of Bitcoin. The overall market dominance of the most valuable digital currency spiked by more than 4% in the last 8 weeks and crossed 42% on Friday.
In a jittery season for crypto bulls, the overall value of digital currencies plunged by approximately $1.4 trillion since 10 November 2021. The latest surge in BTC’s market dominance indicates that other digital currencies dropped more than Bitcoin in the recent market sell-off.
To put things into perspective, Ethereum has lost nearly 20% of its value just in the last 7 days. The correction in Solana was even worst as SOL dipped by 30% during the same period. Bitcoin performed relatively better with a drop of just 6% during the recent week.
In terms of drawdown from its all-time high levels, BTC is currently trading nearly 48% down from its all-time high level in November 2021. Cryptocurrency assets like Solana and Dogecoin are down 65% and 75%, respectively from their all-time highs.
Bitcoin Transfer Volume and Whales
With weak sentiment among retail traders, BTC whales are dominating the current market. Large transactions currently account for most of the trading volume. “Bitcoin transfer volumes continue to be dominated by institutional size flows, with more than 65% of all transactions being larger than $1M in value. The uptrend in institutional dominance in on-chain volumes started around Oct 2020 when prices were around $10k to $11k,” Glassnode noted.
“BTC whale addresses with 100+ Bitcoin continue their long-term pattern of accumulation during this volatility in the 34k to 38k range. In the past 5 years, 1.7M BTC has been added to these large addresses, including 60k more in the past 2 months,” Santiment highlighted in a Tweet.
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