Benjamin Cowen, the founder of Into The Cryptoverse, has expressed skepticism about Bitcoin (BTC) regaining its market dominance levels seen in December 2020, before the cryptocurrency’s price skyrocketed. According to Cowen, “I don’t think it is going back up to 70%; my target for Bitcoin dominance has been 60%.”
As of now, Bitcoin’s dominance stands at 57.36%, a 4.25% increase since mid-July, as per CoinMarketCap data. Since the beginning of the year, this metric has risen by 11.20%. Cowen explained that Bitcoin’s dominance—representing the ratio of Bitcoin’s market capitalization to the entire cryptocurrency market—typically declines during significant altcoin seasons, such as the one in 2021, but gradually recovers.
Despite this trend, Cowen is confident that Bitcoin will not reach its previous dominance levels in this cycle. He sees room for Ethereum and other cryptocurrencies to grow and predicts Bitcoin will approach a 60% dominance between September and December.
Traders often use Bitcoin dominance as a signal to shift their investments from Bitcoin to altcoins. In December 2020, Bitcoin dominance peaked at 70.23%, before its price surged by approximately 220% to $61,283 by March 2021, according to CoinMarketCap data.
Cowen pointed out that Bitcoin dominance dynamics are more intricate now compared to 2019 when it peaked slightly above 71%, partly due to the then smaller market capitalization of stablecoins. He suggested combining Bitcoin dominance with Tether (USDT) dominance to evaluate “flight to safety dominance.” Currently, this combined figure is around 63%, a level reminiscent of June 2019, just before the Federal Reserve cut interest rates. The combined dominance of USDT and Bitcoin now stands at 63.07%.
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