The Bitcoin dominance indicator has fallen to its lowest level in over three years as it continues to retreat from last year’s all-time high.
Bitcoin market dominance has just fallen below its 2021 low and currently sits at 39.73% according to TradingView. This decision was noted by Jason Choi of Spartan Group who tweeted the chart on January 4.
This is in stark contrast to the dominance that Bitcoin had in the markets around this time last year, when it passed 73.6% on January 3, 2021. Since then, it has fallen 46% to current levels. .
Lowest Bitcoin dominance value since 2018
According to TradingView, BTC dominance fell to 39.48% on January 3. It hasn’t been this low since May 2018, when it fell to around 39.18%. In September 2021, BTC dominance fell back below 40% before picking up and falling again in the second half of the year.
The lowest value ever was on January 11, 2018, when it fell to around 35.5% after the first major increase in altcoins.
A dip in BTC dominance is usually a signal that altcoins are going to start rallying, but they too are in decline for now, just at a slower pace.
Ethereum’s market share has been growing steadily since January 2020 and is currently 20.23% according to TradingView. ETH’s dominance hit a local high of 22.35% in early December, but has declined slightly since.
BTC and ETH combined make up around 60% of the total crypto market, which is lower than Bitcoin’s share in March 2021.
Besides altcoins, stablecoins collectively occupy 7.15% of the total crypto market cap according to CoinGecko. High cap altcoins such as Binance Coin (BNB), Solana (SOL) and Cardano (ADA) also increased their shares with 3.67%, 2.22% and 1.80% respectively.
Bitcoin Price Outlook
BTC has continued to decline over the past 24 hours, dropping another percentage point to trade at $ 46,430 as of going to press. It has lost 8.4% over the past week and is currently trading down 32.7% from its all-time high on November 10.
Bitcoin is trading at the lower bound of its linked channel at the range and sits below the 200-day moving average, suggesting that another decline is imminent. The next level of current price support is around $ 45,000.
All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes with the information found on our website is strictly at his own risk.