Bitcoin dominance rate has reached a nine-month high of 45.5%

At 45.5%, the Bitcoin domination rate has risen to a nine-month high. The last time BTC.D exceeded 45% was on June 25, 2022.

The current increase occurs amid two stressful weeks for the cryptocurrency markets, which saw the failure of crypto-friendly banks Silvergate and Signature and a near-collapse of the more significant banking industry. Because BTC is viewed as a less volatile asset than most other cryptocurrencies, its dominance has historically increased during severe stress.

An almost three-day increase in bitcoin’s price, which rocketed beyond $26,000 on Tuesday for the first time since last summer after the announcement of a somewhat positive Consumer Price Index (CPI) data for February, has also recently corresponded with BTC’s market share gains. The cryptocurrency market saw a surge in response to the CPI news.


BTC/USD 4-hour chart | Source: TradingView

BTC was trading above $24,333, down 6% over the past 24 hours but up by double digits from where the price stood over the weekend.

According to FundStrat, the increase may be due to investors’ interest in bitcoin “reigniting when traditional banks such as SVB are failing”.

The dominance of bitcoin has also increased as stablecoin turmoil has grown over the past few weeks, with USDC, the second-largest stablecoin in the world, de-pegging from the dollar in the wake of Silicon Valley Bank’s failure. Although USDC has more recently regained its peg, there is still doubt regarding the future of stablecoins, especially because regulators are paying closer attention to this asset.


Stablecoin supply has been steadily decreasing over the past year | Source: CryptoQuant

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like