The major cryptocurrency's share of the digital asset market has reached its highest in three years at 55.9%. Altcoins' market share continues to gradually decline.
Bitcoin hit its lowest market share in 2018 when it stood at just under 33%. It reached another local low in 2022 at 38%. Since then, this figure has risen, reaching its previous high in 2021, when Bitcoin accounted for more than 60% of the market. On average, Bitcoin's share during these years has fluctuated between 40% and 50%, mostly staying within that range.
Image source: coinmarketcap.com
The number of liquidations per day has also fallen to around 700 million from more than $1 billion at the time of Bitcoin's biggest price drop-off.
Image source: coinglass.com
Bitcoin's market capitalisation has now increased to $1.2 trillion, while the crypto market's total capitalisation sits at just over $2 trillion. In other words, altcoins only account for about $800 million.
Image source: coinmarketcap.com
Bitcoin's price has been rising in mid-August after experiencing a collapse earlier in the month triggered by sell-offs in Asian stock markets. At that time, the pioneer cryptocurrency's price temporarily dipped below the $50,000 mark, showing its sharpest drop since 2021. Since then, Bitcoin's value has returned to the psychologically important $60,000 mark as part of a corrective rise.
Image source: StormGain Cryptocurrency Exchange
According to market participants' optimistic predictions, Bitcoin could soon rise to above $70,000. If that happens, it will pull altcoins up with it, most notably Ethereum, which has a good chance of reaching $4,000 again. Nevertheless, Bitcoin's market share is likely to remain at its highest point in recent years and is unlikely to fall below 50% anytime soon.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)
