Bitcoin’s dominance declines as investors shift capital into altcoins
Data from TradingView indicates that since the end of July, Bitcoin’s market dominance has significantly decreased. The figure fell from its peak of 66.03% on June 25 to 58.57% as of August 26.
This decline points to a clear shift in the cryptocurrency market, which occurred after Bitcoin surged to a new all-time high of $124,517. While the flagship asset experienced a rally, several leading altcoins also showed impressive performance. For instance, XRP reached a new all-time high of $3.66 in July.
The total market capitalization of altcoins has been steadily rising and at the time of writing has already surpassed $1.55 trillion, increasing by more than 67% since the end of June. This suggests that capital is flowing out of Bitcoin and into other cryptocurrencies.
At the same time, some crypto analysts believe that the drop in Bitcoin’s dominance does not automatically mean a collapse in its price. Still, the flagship crypto asset is currently trading around $110,000, which is 2.91% lower than a week ago. Meanwhile, Ethereum’s price rose 8.49% over the past week to $4,530. XRP showed a more modest gain, rising 1.10% to $2.96.
See also: "Bitcoin Price Today: rises to $111K after 7-week low amid Fed concerns"
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