Bitcoin market dominance, at lowest since 2018

 Bitcoin market dominance, at lowest since 2018

      Bitcoin's market share has fallen below the 40% limit, a number that surprises analysts, and places it as the lowest major cryptocurrency since May 2018.

      In this context, we see how Ethereum participation has not stopped growing, although there are other factors that explain the current situation, which are worth looking at for the future.

  The dominance of the Bitcoin market, that is, the predominance of this cryptocurrency within the total sector, is at its lowest level since 2018. And although the news was up in the air, which we all saw coming, it is appropriate to stop at the reasons that explain this phenomenon.

  Anyway, as mentioned in Bitcoin Gemini, compared to altcoins, Bitcoin appears to have entered a downtrend from which it cannot escape, since its all-time high last year.  It currently stands at 39.73%, according to TradingView stats, backed by a series of data provided by Jason Choi of the Spartan Group, who tweeted the following chart about it.

  All of this contrasts, of course, with what happened on January 3, 2021, the moments when we could see how Bitcoin was clearly dominant in the market, with 73.6%, 46% above today.

  Bitcoin market dominance near all-time low

  An important detail to keep in mind is that, in a way, we have already experienced these events.  During September 2021, Bitcoin's market dominance fell below 40%, before recovering and eventually declining again in the second half of the year.

  But, things weren't too complicated for bitcoin in the cryptocurrency world until January 11, 2018, when it dropped to around 35%, in the full growth of altcoins.

  Among the reasons justifying the current situation, we find that the market share of Ethereum is on the rise, constantly increasing since January 2020, and today it is spread by more than 20%.  It's also not far from all-time highs, being around 22% of the total market.

  Meaning, if we add BTC and EHT, we can see that they are combined, at about 60% of the total market.  Both, together, fall short of Bitcoin's market dominance in March 2021, for example.

  According to CoinGecko, we can also spot some minor explanations in the space within the crypto world that stablecoins occupy, reaching 7.15% of the market capitalization.

  Bitcoin Price Predictions

  The Bitcoin market dominance has continued to decline over the past 24 hours, since the chart was released.  It has lost more than 8% of its value in the past week, and this leads many to believe that another drop in its price is imminent.  The next level of support for the current price is $45,000.

  We will likely learn more about the relationship between your market dominance and price in the next few days.

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