Bitcoin’s Dominance Grows To 70% Following Massive Volatility Around $40K (Market Watch)

Bitcoin’s highly volatile price performance continued in the past 24 hours after breaking above $40,000 to a new all-time high and a subsequent massive drop beneath $37,000. Most alternative coins have retraced following the latest rally and have increased BTC’s dominance to about 70%.

Bitcoin Falls After The $40K ATH

Apart from a brief dip beneath $29,000 on Monday, the primary cryptocurrency has been on a roll since the start of the year. Bitcoin bounced off immediately from the drop, recovered the $30,000 price tag, and hasn’t looked back since.

Moreover, the cryptocurrency has continuously broken down new milestones that resulted in consecutive all-time highs. Just yesterday, BTC initiated another impressive leg up and conquered $40,000 for the first time. BTC’s run reached $40,300, which became the latest all-time high.

However, the bears intercepted the move and drove the asset down to $37,500 minutes later. The high fluctuations took BTC to $40,000 again before an even more vigorous drop beneath $37,000.

Nevertheless, bitcoin has recovered some losses and sits just beneath $39,000 as of writing these lines.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Retracing Altcoins Increase BTC’s Dominance

Most alternative coins mimicked BTC’s latest gains with impressive double-digit increases. However, the majority has retraced in the past 24 hours.

Bitcoin Cash (-2%), Binance Coin (-2%), Litecoin (-1%), and Polkadot (-3%) are slightly in the red.

The most significant losers from the top ten are Chainlink (-6%), Cardano (-5%), and Stellar (-8%). On a weekly scale, though, the three coins are still well in the green – LINK is up by 37%, ADA by 63%, and XLM by over 120%.

Ethereum has returned to $1,200, while XRP has added over 10% to above $0.31.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Further losses against the dollar are evident from Status (-22%), Loopring (-18%), Matic Network (-16%), Energy Web Token (-15%), NEM (-13%), Zilliqa (-13%), and more.

Most of those coins have lost value against bitcoin as well. Consequently, BTC’s dominance over the market has increased to 70% after dipping to 68% just a few days ago.

Although Enjin Coin (56%) and Decentraland (52%) have marked impressive gains in the past 24 hours, the total market cap has declined by about $50 billion, but it’s still above $1 trillion.

Source: Crypto Potato