Bitcoin's Market Dominance Reaches 30-Month Peak Ahead of 2024 Halving Event
Summary:
Bitcoin's (BTC) market dominance has reached a 30-month high of 54%, suggesting strength ahead of the Bitcoin halving event in April 2024 which will reduce the mining reward and supply. October's surge in market dominance, as well as a notable price rise, supports the historically bullish month for cryptocurrencies. Bitcoin's dominance has fallen from over 80% in 2017 owing to the growth of other cryptocurrencies.
Bitcoin's (BTC) current share of the cryptocurrency market, at 54%, is at a 30-month high, suggesting that the preeminent digital currency is gaining ground ahead of the halving event set for April 2024. The halving of Bitcoin—occuring every four years—is an event that halves the mining reward for each block, thereby reducing Bitcoin's supply while its demand continues to grow, which often results in an uptick in price. The forthcoming 2024 halving will decrease the BTC mining reward from its present 6.25 BTC to 3.125 BTC. As the total quantity of Bitcoin is capped at 21 million units, the halving of the mining rewards generates a supply-and-demand gap that diminishes the entry of fresh BTC into the market.
Bitcoin's market dominance refers to its market value compared to the entire digital asset market, and is seen as an indicator of its power. A dominance above 50% is commonly viewed as extremely bullish, reaching a peak unseen since the last bullish phase in April. The market dominance of Bitcoin started its recovery process in early October when it surged from slightly below 49%, hitting this new high that hasn't been reached in two and a half years. October has historically been a positive month for cryptocurrencies, hence the "Uptober" label. This is apparent from Bitcoin's significant percentage increase in the past few weeks, which saw it climb from just under $27,000 at the start of October to a fresh annual peak of $35,000.
In 2017, Bitcoin held more than 80% of the market share, followed by Ethereum (ETH) with a market share of around 10%-17%. However, Bitcoin has seen a substantial decrease in its market dominance over the years, due to an increase in the number of different digital currencies and the emergence of several new tokens in the 2021 bull run.
This article is available as a crypto-collectible in the form of a non-fungible token (NFT), enabling you to memorialize this historical event and show support for independent cryptocurrency journalism.
Published At
10/26/2023 8:12:46 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.