Bitcoin , the world’s most valuable digital currency, is facing tough competition from other cryptocurrency assets as the recent rally in altcoins is causing a major drop in the total crypto market dominance of BTC.
According to the latest data published by Coinmarketcap, Bitcoin’s market dominance dipped below 45% for the first time in several weeks after Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), XRP and Dogecoin (DOGE) saw strong gains in the last seven days.
Bitcoin is up by approximately 12% in the last week. On the other hand, the price of Cardano increased by nearly 42% during the same period. ETH and DOGE are also up by more than 30% in the last seven days.
Currently, Bitcoin is trading near $45,000 with a market cap of more than $850 billion. BTC’s crypto market dominance currently stands at around 44.7%, compared to 48% during the last week of July 2021.
In addition, Bitcoin network activity increased sharply during the last few days as the price of the world’s largest cryptocurrency jumped above $46,000. “Address activity continues to be a very important metric to watch for hints on whether Bitcoin will cross $50k or fall below $40k. Currently, 720k to 930k addresses use the BTC network daily, and we're looking for a spike above 1 million as a bull run signal,” crypto Analytics firm Santiment highlighted recently.
Bitcoin Exchange Supply Ratio
The exchange supply ratio of BTC has dropped sharply since the start of August 2021. Leading Bitcoin accounts are moving the cryptocurrency from digital exchanges to crypto wallets. During the last week of July, Bitcoin whales moved over $1 billion worth of BTC from Coinbase to digital wallets in three separate transactions.
“Bitcoin has continued to flow out of exchanges in August at a rate between 75k and 100k per month. This magnitude of outflow is similar to the period between 2020 and Q1 2021, where heavy accumulation and the GBTC arbitrage trade dominated,” Glassnode mentioned in a recent report.
