Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit
Bitcoin dominance has been on the rise since May this year after moving sideways in previous months. The metric, used to measure the percentage of the crypto market cap formed by Bitcoin, stands at 47% approaching levels last seen in November 2021.Currently the combined dominance of BTC, USDT, USDC, and BUSD sits at 59.2%, which is the highest dominance seen by this “flight to safety bundle” since early April 2021. 59.2% is still 5-10% shy of the dominance throughout most of 2020.At that time, Bitcoin dominance alone sat north of 60%. The boom in non-fungible tokens (NFTs), rise in popularity of decentralized finance (DeFi) protocols, memecoins like DOGE and SHIB, contributed to the decline in this metric and drove the total market cap for cryptocurrencies to above $2 trillion. Arcane Research added that Bitcoin, Ethereum, and popular stablecoins have over 77% of crypto market cap dominance. This hints at a bleak picture for altcoins as investors attempt to preserve wealth from further downside.
While Crypto Bleeds, Bitcoin On Its Way To $34,000?
The above suggests traders might consider leaving the altcoin market until conditions favor them again. In the meantime, Bitcoin dominance could continue its uptrend and return to its 2020 above of 60%.Related Reading | $127 Million In Bitcoin And Ethereum Positions Liquidated Amid Market Drop
In addition, BTC’s price could see some relief after a week of crab-like price action. On this note, economist Michaël van de Poppe the following, with a more optimistic prediction for altcoins during June:Easy, the odds for a relief rally this month are increasing as #Bitcoin recovered this entire move. Altcoins on the daily timeframe is also starting to look better. This could be a relief rally of 50-100% on them. Be ready.