At present, the only driving force for the development of the encryption market is Big Brother Bitcoin. With the continued indifference of competing currencies and the deepening of the bear market, the King of Cryptocurrencies has reached its highest market dominance this year
At present, the only driving force for the development of the encryption market is Big Brother Bitcoin. With the continued indifference of competing currencies and the deepening of the bear market, the King of Cryptocurrencies has reached its highest market dominance this year.
Bitcoin is usually a pioneer in the main market cycle, while counterfeit currency lags behind. This is particularly evident in the current cycle, with most counterfeit coins still falling by 80-90% from their peak.
Bitcoin dominates over 50%
According to TradeView data, Bitcoin's dominant position reached its highest level in 2023 this week, reaching 52.17%. In late June, it exceeded 50%, but fell back to 49% in August.
As of January 1st, BTC's market share was only 42%, with steady growth throughout the year and a clear upward trend.
In addition, due to the impact of the FTX crash, the dominant position of BTC dropped to below 40% at the end of November. The last time it was higher than the current level was in early April 2021, six months before the bull market peaked.
Bitcoin Market Dominance BTC Source
As the halving approach, this trend may continue as Bitcoin attracts liquidity and attention. However, some analysts predict that they will eventually be eliminated first.
The total market value remains around 1.1 trillion US dollars, which means that market share comes at the cost of counterfeit currency. Ethereum has fallen to a seven month low, and other competing currency markets have also followed suit.
Read more: Bitcoin Half Cycle and Investment Strategies: What to Know
The bear market is the longest lasting bear market for counterfeit currency
Many counterfeit coins reached their peak in May 2021, six months before Bitcoin and the wider crypto market. Reasonably, after 29 months of a bear market, they are still six months behind the "Big Brother" BTC.
Cryptocurrency analyst 'Moustache' observed that the total market value excluding Bitcoin has broken through a two and a half year decline wedge.
If you think counterfeit coins look bearish here, in my opinion you would be surprised, "he said.
Total cryptocurrency market value excluding BTC
Cryptocurrency Market Outlook
The short-term prospects for Bitcoin and its similar products are still quite severe, especially for counterfeit coins. On that day, the total market value fell by 1.1%, and counterfeit coins were in a red sea.
BTC remains above the key resistance level of $28310 and has risen 5.4% in the past week.
However, Ethereum once again fell to $1552, Coin's native BNB fell 1.5% to $210, and XRP fell 1.8% to $0.481.
Polygon, Litecoin, ShibaInu, and Avalanche suffered significant losses.
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