• The financial crisis in the crypto market caused Bitcoin dominance to drop.
• The “cash is trash” narrative was seen as a way to invest in “hard assets” such as Bitcoin and gold.
• Evergrande’s bankruptcy filing was blamed for the sell-off.
Crypto Market Mayhem Causes Bitcoin Dominance Plunge
The crypto markets have been experiencing panic selling, causing Bitcoin’s Dominance (BTC.D) to drop significantly. BTC.D is calculated by dividing the BTC market by the total crypto market cap, indicating that altcoins, as a whole, are gaining value relative to the market leader – Bitcoin. The recent sell-off was blamed on news that Chinese property developer Evergrande had filed for bankruptcy protection, while figures show that it has $19 billion of overseas liabilities.
Bitcoin Consolidation Phase Broken
The consolidation phase of Bitcoin over the past seven weeks was broken with a 9% downside swing on the hourly candle to bounce off $25.3k support. This resulted in $62.4 billion being wiped from the total crypto market cap and BTC.D tanking further down according to Dan Gambardello, Founder of Crypto Capital Venture who predicted further drops in BTC.D would come soon after this event occurred .
March Banking Crisis Increases BTC Dominance
At the start of 2023, BTC.D had been trending higher due to many US banks collapsing which started from March 13th and resulted in one of the largest daily candles seen since last year at 43%. As a result, investors began favoring hard assets such as Bitcoin and gold over cash due to its “cash is trash” narrative; demonstrating that cryptocurrency cannot be isolated from legacy markets despite some believing otherwise .
BTC Dominance Current Status
Currently , BTC D stands at 49.53% of the crypto market with its next level of significant support existing around 48%. It is likely that this may break soon as new lows are predicted, however it remains unclear exactly what will happen until then .
The recent fall in Bitcoin dominance has demonstrated how much altcoins have gained value against their main rival; showing how important they can be when it comes to diversifying your portfolio against volatility or other factors like those recently seen with Evergrande’s bankruptcy filing . Overall , it appears that cryptocurrency cannot be isolated from legacy markets which means investors must remain alert about any potential risks or changes taking place within both sectors before investing or trading any digital asset .