In an era of unpredictability within the cryptocurrency market, where investors grapple with challenges in achieving profits, there has been a noteworthy development. Bitcoin dominance, a metric that gauges the proportion of the total crypto market capitalization occupied by Bitcoin, has surpassed the 50% milestone.
During the early hours of Tuesday, June 20, Bitcoin dominance surged slightly above 50%, and as per information obtained from Tradingview, it currently stands at 50.13% at the time of writing. Meanwhile, Bitcoin price is trading at $26,868 at press time along with a 1.6% overnight gain.
Consequently, it can be inferred that Bitcoin single-handedly represents half of the overall market capitalization of the cryptocurrency industry, while amounting to a staggering $1.08 trillion. As per data sourced from CoinMarketCap, Bitcoin’s current market capitalization stands at an impressive $523.8 billion.
Significantly, Bitcoin’s dominance in the market has experienced a remarkable surge of over 19.2 in the past 6 months. This substantial increase can be attributed primarily to investors seeking refuge in the flagship cryptocurrency following the FTX crisis, along with the mounting regulatory scrutiny surrounding crypto assets in the United States.
During the past eight months, there has been a noteworthy surge in Bitcoin dominance. On the other hand, Ethereum’s market dominance has remained relatively stable, consistently hovering around the 20% mark for almost a year. At present, the combined value of Bitcoin and Ether contributes more than 70% of the entire cryptocurrency market.
Michael Saylor, the co-founder of MicroStrategy and a prominent advocate for Bitcoin, holds a firm belief that Bitcoin’s market dominance will surpass 80% in the forthcoming years. He predicts the increase will occur due to mounting regulatory pressure from the Securities and Exchange Commission, resulting in the demise of stablecoins and the majority of other crypto assets.
He added, “The entire industry is destined to be rationalized down to a Bitcoin-focused industry, with maybe half a dozen to a dozen other Proof of Work tokens.”
Furthermore, Saylor expressed his viewpoint that the absence of substantial institutional investment in the crypto realm can be attributed to the perplexity and unease arising from the existence of 25,000 alternative cryptocurrencies positioning themselves as alternatives to Bitcoin.
Highlighting Bitcoin’s unique status, Saylor emphasized that it is universally recognized as the primary digital commodity within the industry. This sentiment is reinforced by the fact that SEC Chair Gary Gensler has classified Bitcoin specifically as a commodity. Notably, the SEC has now identified 68 cryptocurrencies as securities.
Moreover, according to crypto research firm Santiment, the recent surge in Bitcoin’s price can be attributed to investment giant Blackrock’s filing for a Bitcoin Spot ETF. This development has played a significant role in driving Bitcoin’s upwards price movement in recent days.