The price of Bitcoin has been rising all the time since the large drops recorded in mid-March. Following it, the vast majority of altcoins are also rising, which in total means a significant price increase. However, the dominance of bitcoin on the market is becoming more and more significant.
Bitcoin's dominance is the highest since the beginning of the year
Bitcoin's dominance is an indicator that measures the share of the most popular cryptocurrencies in the whole market. At the time of writing this article it is 66.02%, and since January 20 this year it has not been at a higher level
This means that the price of altcoins, despite the rise in relation to the dollar, is falling compared to Bitcoin
Bitcoin dominance dropped significantly in February when it reached 60%. At that time, the market was in the so-called Alt season. Since then, however, Bitcoin has been taking over the market because of the approaching halving.
It is estimated that the event that will halve the rewards for Bitcoin extraction will take place on May 12th, and historically, there have always been significant increases after this event.
Altcoins are losing to BTC
Over the last month, the price of altcoins has been falling in relation to Bitcoin.
As can be seen in the graph above, all major cryptocurrencies have lost their value compared to the most popular crypto - Bitcoin. Ethereum fell slightly below 4%, XRP fell by 12%, while EOS lost a staggering 20% of its value in Bitcoin.
This means that there is a mismatch of funds coming into the market because investors prefer to invest their money in Bitcoin.
This may have been to be expected given that Bitcoin halving will take place in 2 days. On the positive side, however, the price of altcoins is rising in relation to the US dollar. The whole market is recovering very nicely and relatively quickly after the falls that occurred in mid-March.
It is very interesting how the market will behave after halving, as most investors expect the price to fall in a short period of time.