Benjamin Cowen, founding father of Into The Cryptoverse, doubts that Bitcoin (BTC)’s market dominance will return to its December 2020 ranges, earlier than the asset’s value surged dramatically. Cowen said, “I don’t suppose it’s going again as much as 70%; my goal for Bitcoin dominance has been 60%.”
At present, Bitcoin dominance stands at 57.36%, an increase of 4.25% since mid-July, in line with CoinMarketCap knowledge. Since January 1, it has elevated by 11.20%. Cowen defined that in main altcoin seasons, such because the one skilled in 2021, Bitcoin’s dominance, the ratio of Bitcoin’s market capitalization to your entire crypto market, tends to say no however step by step climbs again.
Nevertheless, Cowen stays assured that this cycle won’t see Bitcoin reaching its previous dominance ranges. Cowen believes there may be ample area for Ethereum and different cryptocurrencies, predicting Bitcoin will transfer towards 60% dominance between September and December.
Merchants typically watch Bitcoin dominance ranges as a cue to promote Bitcoin and put money into different belongings like altcoins. In December 2020, Bitcoin dominance reached 70.23% earlier than its value soared by about 220% to $61,283 in March 2021, in line with CoinMarketCap knowledge.
Cowen highlighted that Bitcoin dominance is extra complicated now than in 2019 when it peaked barely above 71%, because of the smaller stablecoin market cap at the moment. He suggested utilizing a mixture of Bitcoin dominance and stablecoin Tether (USDT) dominance to evaluate “flight to security dominance.” Within the latest interview, he talked about that this mixed determine is round 63%, akin to ranges in June 2019, earlier than the Federal Reserve reduce rates of interest. At present, the mixed dominance of USDT and Bitcoin stands at 63.07%.