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Bitcoin’s dominance remains strong, as market sell-offs subside

Even though the price has dropped below $30,000(R470K), Bitcoin’s market dominance has not diminished. Altcoins had suffered the same fate as BTC. This gave the pioneer cryptocurrency more room to reclaim market dominance. Even though the market has been brutal to investors over the last week, it is beginning to level off, and as the end of the month approaches, indicators are pointing to better forecasts.

Instead, bitcoin’s dominance has returned to seven-month highs. It is currently at or above 46%, and the last time it was this high was in October 2021, following the September crash.

This dominance is also visible in the digital asset’s performance in comparison to the other indexes in the space. The month of May hit all of the indexes hard, resulting in double-digit losses across the board, but BTC has fared better than its peers.

Bitcoin is still on the rise

There has never been any doubt about Bitcoin’s dominance in the crypto space. This dominance, however, has been eroding as more digital assets gain traction. It was expected that cryptocurrencies such as Ethereum would continue to gain market share, but this has not occurred.

Bitcoin’s price is down 24% in May, a significant drop. However, the small, mid, and large-cap indexes have all performed worse. The Large Cap Index is down 27% since the beginning of the month, while the Mid Cap Index is down 31%. When the market is in a downtrend, the Small Cap Index suffers the most losses, with a 37% drop since the month began.

Altcoins aren’t looking good

The altcoins market attracts investors because it offers a high potential for maximum returns. Throughout the bull market rallies, the market has bloomed. However, just as they are likely to run high during bull markets, they are also likely to suffer the greatest losses during bear markets. So far, this has been the case in recent months. While bitcoin has managed to retain more than 40% of its all-time high value, many altcoins have not.

Cardano is an example of this. ADA had one of the biggest rallies during the 2021 bull market, but it was also one of the worst-hit cryptocurrencies during the bear market. Since reaching an all-time high of $3.10(R48.56) in September, it has lost more than 845 of its value.

Dogecoin, a popular meme coin among investors, is down more than 89% from its all-time high. Solana is down by more than 80%. In comparison to these, bitcoin has been one of the market’s best performers, which explains why its dominance has grown.

Bitcoin’s dominance remains strong, as market sell-offs subside

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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