Bitcoin (BTC) has been leading the recovery from the forefront. When you look at the performance of Bitcoin (BTC) today itself, it is up by 4.85%. It can easily cross the levels of $ 6000 as well. Currently, it is trading around $ 6350. It clearly indicates that the momentum is back on the side of Bitcoin (BTC). However, it is not just gaining price, but it is also becoming more and more dominant as well. Currently, the dominance of Bitcoin (BTC) stands at 58.1%. The level of 58.1% is the highest in the past year. The question which arises is why is Bitcoin (BTC) becoming more and more dominant.
Why is Bitcoin (BTC) dominance at 1 year high?
Bitcoin leading recovery:
At the same point in time, there are many other Altcoins which are bleeding. The most notable among them being Ripple (XRP). Year-to-date, it has lost 18%. Similarly, Stellar lumens (XLM) which directly competes with ripple has lost 20% year-to-date. Also, IOTA (MIOTA) has again lost to 20% year-to-date. It clearly indicates that the rally is not broad-based. The Altcoins which have been rising as well are not able to outperform Bitcoin (BTC) in most of the cases. It is the main reason why Bitcoin (BTC) has been gaining more and more momentum in dominance.
Another reason why Bitcoin (BTC) has been moving up irrespective of the other Altcoins is due to the rise in volumes. Around a year back, the daily volumes for Bitcoin were around $ 7 billion. When you look at the average daily volumes, in the past 15 days to 20 days or longer, they have been about $ 12 billion. It clearly indicates that more and more investors are investing in Bitcoin (BTC). When the average volumes double, you can be sure that the rally will intensify rather than fizzle out.
These three factors combined are propelling Bitcoin (BTC) higher than ever before. If the Altcoins continue to underperform, the dominance of Bitcoin (BTC) is not only here to stay but can increase shortly as well.