Despite Bitcoin's market price fluctuating sluggishly just above $26,000 in recent days and the asset's market cap coming in at just over $500 billion, the asset's increasing market dominance shows market participants' interest in the digital currency. This indicator set its two-year high, reaching a market share of 50%.
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The news that BlackRock, which manages around $9 trillion in assets, has filed an application to register a Bitcoin spot exchange-traded fund (ETF) has sparked interest in Bitcoin among market participants. It would make it easier for institutional investors, including pension funds, to own cryptocurrencies. This is a very good signal for Bitcoin, indicating a growing interest in it from serious financial institutions.
Another factor behind Bitcoin's growing market dominance has been a decline in investor interest in altcoins amid recent lawsuits brought against them by the US SEC. SEO chief Gary Gensler previously declared that he considers all cryptocurrencies except Bitcoin to be securities. However, he categorises Bitcoin as a commodity, which is a significant exception and puts the currency in a privileged position.
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Such statements from the SEC official are critical for Ethereum, the second-most-popular and market-dominating digital currency (with a share of 20%).
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After all, once it switches to the Proof-of-Stake algorithm, it falls well within the US regulator's definition of a security. The situation for this asset will become even more challenging after the launch of the EIP-1559 upgrade, which will result in the network stopping token burning and adding to its value.
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Bitcoin could gain even more market share in the near future to push it over 50%. The other cryptocurrencies, on the other hand, continue to lose weight.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)