It’s been a rough day for the cryptocurrency market, in general. The total capitalization declined by about $40 billion, and most of it was because altcoins are bleeding out.
Bitcoin Dominance on the Run
Every now and then, especially in bear markets, Bitcoin tends to outperform altcoins. The predominant reason for this is that it’s an established market leader with a lot more investor confidence in it compared to historically volatile and unstable altcoins.
With this said, Bitcoin’s dominance – the metric that tracks its share relative to that of the entire cryptocurrency market – has spiked by 1% in the past 24 hours alone, tapping yet another high not seen since October last year.
Meanwhile, Bitcoin’s price is down a little less than one percent in the past day, trading at $29,000 and unable to recover from the recent slumps.
As seen in the above chart, BTC’s price is trapped below the 200-days exponential moving average, which is currently acting as a strong resistance.
Ethereum and Cardano Shed 5%
The altcoin market is looking particularly wobbly, and Bitcoin’s rising dominance is a clear sign of this.
In any case, ETH’s chart is looking particularly bleak as the cryptocurrency lost around 5% in the past 24 hours alone. As CryptoPotato reported yesterday, ETH is trading at its lowest point against Bitcoin since last October.
At the time of this writing, the market recovered some of the losses, although it’s still predominantly in red.
Another altcoin that’s having a rough time is Cardano’s ADA – also down about 5% on the day. Solana lost about 7% in the past 24 hours, the same as Avalanche (AVAX). In general, altcoins don’t have a good outlook, and the biggest winner is XCN with a 64.4% increase – clearly, an outlier in today’s market conditions when compared to the next best-performing top 100 asset, which is ETC with a distant 4.4% increase.
On the other hand, we have GMT – the cryptocurrency that was making strides a couple of weeks back. It’s now down 20% on the day and almost 40% on the week.