{"id":453707,"date":"2022-05-27T17:22:22","date_gmt":"2022-05-27T14:22:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/"},"modified":"2022-05-27T17:22:22","modified_gmt":"2022-05-27T14:22:22","slug":"3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/","title":{"rendered":"# 3 reasons why Bitcoin is regaining its crypto market dominance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ea452e60a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ea452e60a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/#%E2%80%9D_3_reasons_why_Bitcoin_is_regaining_its_crypto_market_dominance_%E2%80%9C\" >&#8221; 3 reasons why Bitcoin is regaining its crypto market dominance &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/#Bitcoin_dominance_at_6-month_highs\" >Bitcoin dominance at 6-month highs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/#Ethereum_%E2%80%9CMerge%E2%80%9D_narrative_is_cooling_down\" >Ethereum &#8220;Merge&#8221; narrative is cooling down<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/#LUNA_to_zero\" >LUNA to zero<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\/#Altszn_ded\" >Altszn ded\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_3_reasons_why_Bitcoin_is_regaining_its_crypto_market_dominance_%E2%80%9C\"><\/span>&#8221; 3 reasons why Bitcoin is regaining its crypto market dominance &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bitcoin (BTC) is regaining its lost crypto market dominance even as it trades nearly 60% below its record highs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_dominance_at_6-month_highs\"><\/span>Bitcoin dominance at 6-month highs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Bitcoin Market Dominance (BTC.D) index, a metric that weighs BTC&#8217;s market capitalization against the rest of the cryptocurrency market, jumped to around 47% on May 27, its highest since October 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/6908f649-3bde-405f-9bda-480f447ec38a.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin Market Dominance daily chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The dominance index swelled despite the drop in Bitcoin&#8217;s market cap in the last six months from $1.3 trillion in November 2021 to nearly $550 billion in May 2022, suggesting that traders were more comfortable selling altcoins.\u00a0<\/p>\n<p>Let&#8217;s look at three likely reasons why traders have been rotating out of the altcoin market to seek safety in Bitcoin.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_%E2%80%9CMerge%E2%80%9D_narrative_is_cooling_down\"><\/span>Ethereum &#8220;Merge&#8221; narrative is cooling down<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ethereum&#8217;s native token Ether (ETH), the largest alternative cryptocurrency by market cap, has witnessed consistent declines in its market dominance in the last five months\u2014from 22.38% in December 2021 to 17.86% in May 2022.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/520e398b-67c5-4030-a3ae-465b8b8fadc7.png\"><figcaption style=\"text-align: center;\"><em>Ethereum Market Dominance daily chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The plunge comes after two years of a sustained uptrend, with ETH\/BTC\u00a0rising more than 200% between September 2019 and December 2021.<\/p>\n<p>As Cointelegraph reported, Ether outperformed Bitcoin in recent years, largely due to the hype surrounding its long-awaited protocol upgrade, called &#8220;the Merge,&#8221; which hopes to make Ethereum more scalable and less expensive.<\/p>\n<p>But the upgrade, which aims to transition Ethereum&#8217;s blockchain from proof-of-work to proof-of-stake\u2014a counterpart known as Beacon Chain\u2014has faced repeated delays in its launch. <\/p>\n<p>Only recently,\u00a0Martin K\u00f6ppelmann, the co-founder of the Ethereum Virtual Machine- (EVM)-compatible Gnosis chain, highlighted a seven-block reorganization on the Beacon Chain, meaning that the chain got briefly &#8220;forked&#8221; in its testing phase.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Ethereum beacon chain experienced a 7-block deep reorg ~2.5h ago. This shows that the current attestation strategy of nodes should be reconsidered to hopefully result in a more stable chain! (proposals already exist) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/BkQrKuUlw1\">pic.twitter.com\/BkQrKuUlw1<\/a><\/p>\n<p>\u2014 Martin K\u00f6ppelmann  (@koeppelmann) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/koeppelmann\/status\/1529458000011972610?ref_src=twsrc%5Etfw\">May 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Ether dropped by nearly 13.5% against the U.S. dollar following the reveal on May 25 while ETH\/BTC plunged to 0.059, the lowest in six months.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/34e09fa4-f1a5-46b9-a524-87aac83a0433.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC daily price chart featuring key support level. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Ethereum lacks narratives to drive ETH&#8217;s price upward after undergoing the Merge upgrade, noted OxHamZ, an independent market analyst, saying that investors have already &#8220;priced in&#8221; the network upgrade hype.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What\u2019s the narrative to own ETH after the merge?<\/p>\n<p>All KPIs are down<\/p>\n<p>Active wallets stagnant<br \/>NFT hype dead<br \/>LP trading volumes trending poorly <br \/>Liquidity shrink in stables<br \/>L2 cannibalization growing (h\/t <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TaschaLabs?ref_src=twsrc%5Etfw\">@TaschaLabs<\/a>)<\/p>\n<p>ETH is down 50% but the value of its block-space is also down<\/p>\n<p>\u2014 0xHamZ (@0xHamz) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xHamz\/status\/1529592025225613313?ref_src=twsrc%5Etfw\">May 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"LUNA_to_zero\"><\/span>LUNA to zero<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin&#8217;s renewed crypto market strength also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears due to the Terra (LUNA) market&#8217;s collapse.<\/p>\n<p>LUNA\/BTC, a financial instrument that traces the Terra token&#8217;s strength against Bitcoin, fell by 99.99% to 0.00000004 in May, which made it practically worthless. <\/p>\n<p>Meanwhile, LUNA declined similarly against the dollar, raising anticipations that traders dumped the token to seek safety in BTC and cash.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/bedaaf09-d5db-4688-bf3b-04bad4f7c77a.png\"><figcaption style=\"text-align: center;\"><em>LUNA\/BTC daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>LUNA&#8217;s market cap before the May&#8217;s deadly crash was $40.88 billion.<\/p>\n<p><strong><em>Related:\u00a0Crypto funds under management drop to a low not seen since July 2021<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Altszn_ded\"><\/span>Altszn ded\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the whole, the altcoin market, containing everything from large-cap blockchain projects to sketchy crypto assets, has fallen by nearly 65% six months after topping out near $1.7 trillion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/325f1aab-8976-4391-8c79-1b06cd934b69.png\"><figcaption style=\"text-align: center;\"><em>Altcoin market cap daily chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>A deeper look into some tokens shows that \u2014 unlike Bitcoin \u2014 most are down over 80% from their all-time highs, hinting at an overall investor exit from altcoins and into cash, stablecoins or BTC.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/a6caf516-788e-41dd-a8c0-5b62d9093f2f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>DeFi projects and their downside retracement from record highs. Source: Messari<\/em><\/figcaption><\/figure>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/81060e16-4c26-4ae5-b467-98c647f23e11.png\"><figcaption style=\"text-align: center;\"><em>Some dead crypto projects so far in 2022. Source: Messari<\/em><\/figcaption><\/figure>\n<p>That is primarily because Bitcoin isn&#8217;t only the oldest blockchain, but stands on its own without any central authority.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">No one controls the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a> network.<\/p>\n<p>\u2014 CZ  Binance (@cz_binance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1529969308293554182?ref_src=twsrc%5Etfw\">May 26, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Historically, Bitcoin&#8217;s dominance drops during crypto bull markets as waves of new tokens spring up during the mania phase. <\/p>\n<p>For instance, the duration of the infamous initial coin offering (ICO) pump coincided with BTC.D, dropping from nearly 96% in January 2017 to 35% in January 2018.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/c2deae15-28aa-45a7-8437-1c3f60ae7c19.png\"><figcaption style=\"text-align: center;\"><em>BTC.D daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Then the March 2020 crash was the beginning of the DeFi and nonfungible token (NFT) hype, boosted further by the Federal Reserve&#8217;s quantitative easing.\u00a0<\/p>\n<p>Therefore, if Bitcoin&#8217;s market dominance has indeed bottomed out, it could once again align with a\u00a0macro bottom in Bitcoin price, and possibly the beginning of a new bull market phase in the coming months. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-bitcoin-is-regaining-its-crypto-market-dominance\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; 3 reasons why Bitcoin is regaining its crypto market dominance &#8220; Bitcoin (BTC) is regaining its lost crypto market dominance even as it trades nearly 60% below its record highs. Bitcoin dominance at 6-month highs The Bitcoin Market Dominance (BTC.D) index, a metric that weighs BTC&#8217;s market capitalization against the rest of the cryptocurrency&#8230;<\/p>\n","protected":false},"author":1,"featured_media":453708,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNTMxMWMwMmYtMTkyNS00NTdiLTkwY2EtMDhkMmU3NmMwN2UzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[88119,74862,81951,74937,75583,74939,92393,78261,122378,73785,71407],"class_list":["post-453707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin-watch","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-cash","tag-market-analysis","tag-safe-haven","tag-tech-analysis","tag-terra","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=453707"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/453708"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=453707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=453707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=453707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}