Bitcoin Market Share in Cryptocurrency at Highest Since 2021

Bitcoin's Market Share in Cryptocurrency at Highest Since 2021

Bitcoin Market Share in Cryptocurrency at Highest Since 2021: Bitcoin now dominates the cryptocurrency market at a level not seen in three years,
driven by strong demand for U.S. exchange-traded funds (ETFs) that invest in the most prominent digital currency,
amid challenging times for smaller cryptocurrencies.

 

Content

Bitcoin domination
Institutional Demand


Bitcoin domination

As of last week, Bitcoin made up nearly 55% of the $2.4 trillion virtual currency market,
a share last observed in April 2021, per CoinMarketCap.
Following Bitcoin in market dominance are Ether, the stablecoin Tether, Binance’s native token BNB, and Solana.

Recent U.S. spot ETFs introduced by firms such as BlackRock Inc. and Fidelity Investments,
which are just three months old, have already gathered around $56 billion in assets,
marking one of the most successful launches in the fund category.
These inflows pushed Bitcoin to a record high of $73,798 in mid-March.
Since then, Bitcoin has fallen by about 6%, while a measure of smaller cryptocurrencies has plummeted over 30%.
This decline aligns with dampened expectations for a more relaxed U.S. monetary policy, often boosting speculative investments.

Institutional Demand

Institutional investments in U.S. ETFs have led to Bitcoin performing exceptionally well compared to other cryptocurrencies,
according to Benjamin Celermajer, director at Magnet Capital, a digital-asset investment firm.
On Monday, Bitcoin and Ether, the second-largest cryptocurrency,
saw prices increase following news that asset managers are
set to introduce ETFs listed in Hong Kong for both digital tokens.
At 2:35 p.m. in New York, Bitcoin was trading down about 1% at $63,500,
while Ether was up approximately 1% at $3,094.
Meanwhile, smaller cryptocurrencies like Polygon and Cardano, as well as the popular meme token Dogecoin, were trading lower.

The Bloomberg Galaxy Crypto Index has surged over threefold since the beginning of last year,
rebounding from a deep bear market in 2022. Crypto enthusiasts are now anticipating the upcoming Bitcoin halving event,
which is expected around April 20 and will cut the new supply of the token by half.
While previous halvings have spurred price increases, skepticism remains about the likelihood of a similar impact this time,
especially after Bitcoin’s recent peak.

 

 

Bitcoin’s Market Share in Cryptocurrency at Highest Since 2021