The market dominance of Bitcoin has entered into a zone of free fall, as it has currently bottomed out under 40% this week. This is very close to the all-time low that the cryptocurrency saw back in January of 2018, as reported by data from TradingView. The market dominance of BTC refers to the ratio between the market capitalization of BTC and the total market cap of the crypto industry.
Incidentally, this is not the first time that the dominance of BTC has gone down in 2021. Earlier, in the month of May, Cointelegraph stated that BTC had gone down to represent just 40.3% of the combined crypto-asset capitalization, as reported by CoinMarketCap.
Bitcoin Losing Its Stronghold On The Sector
Peter Schiff, the Chairman of Europac and a critic of Bitcoin, recently tweeted about the event on Wednesday, where he stated that this is indicative of the cryptocurrency losing out on its first-mover competitive advantage.
According to research that has been published by TradingPlatforms on Monday, it has been stated that the data could possibly signal an incoming alt season. Over the last few years, the altcoin dominance in the market has seen a threefold increase from 21% in 2014 to 60% in 2021.
Worse news for Bitcoin, as the market dominance for Ethereum also continues to sit pretty at above 20% at almost $150 billion. Over the last year, the market dominance of Ethereum has gone up by 10%. In a tweet on Friday, famous crypto analyst Altcoin Sherpa stated that the alt season has been prevailing throughout the entire year.
Early in October, most of the analysts working for JPMorgan stated that the rally for Bitcoin, at that very time, was being fueled by an increased appetite from most of the institutional investors of the land.