The trial of Sam Bankman-Fried, the ex-FTX CEO is live, simultaneously, Bitcoin reached just under half 1 US billion trillion in the crypto market, or, 50% of the total. In short, Bitcoin’s market dominance continues to climb.
The market share of Bitcoin was approximately 38% earlier in January which has now jumped to 48.5%, as per the latest data.
Despite the former CEO of the fallen cryptocurrency giant now facing trials for fraud, conspiracy, and laundering, investors do not seem to be keeping their distance from cryptocurrency assets. The trend that is live right now is that many of the investments seem to be ditching other alternative coins and turning towards Bitcoin, considering the safety that this dominant and industry-leading cryptocurrency offers to the users and the transactions.
Reviewing the data from last week alone, investments in digital assets have seen a hike of 78 million US dollars. The majority of these investments, making up to 43 million US dollars are in Bitcoin.
The Current Geopolitical Risks Present In The US Economy
It is to be noted that more people are turning in favor of Bitcoin amidst the geopolitical environment becomes more threatening owing to Russia-NATO tensions, strategic competition of the US with China, the climatic risk, the after-effects of COVID-19 pandemic, the growing cyber attacks, anti-/deglobalization, and the nation’s debt level.
It is also to be noted that the fiscal position of the US is at its weakest since WWII.
Bitcoin Dominance And The Impacts On Ether
This has made the the secondarily popular and preferred crypto currency Ether have a dip in the investments that it receives. It has six futures-based Ethereum ETFs in the US and this new ETFs along with the other ones has managed to make only a total of 10 million US dollars from the investors.
The dominance the Ether possessed in the market has fallen by 2 percent recently. The 19 percent market dominance that it had last January is now 17 percent, only.
It was earlier in 2021 that the Bitcoin futures ETFs were launched in the US for the first time. This venture was able to bring in a total of 1 billion US dollars at that time. Even though the market dominance of Bitcoin has been on the rise recently, the experts in the coin share data analysis and reports say that compared to 2021 the interest that investors have towards digital currencies is much lower now.
On Tuesday afternoon both Bitcoin and Ether were down and were below 1 percent. While Ether was trading around 1500 US dollars, Bitcoin was trading near 27,300 US dollars.
How To Find Bitcoin Dominance In Crypto?
The dominance of a coin in the crypto market can be said as the ratio of the coin’s market cap to the cumulative market cap of the whole cryptocurrencies. Here, by analyzing the dominance of Bitcoin in the whole crypto market can be understood by evaluating how big Bitcoin is in relation to the whole crypto market.
To be more precise, it is calculated by dividing the market cap of Bitcoin by the total market cap of the coins in the top 125 positions. And then all of these are multiplied by 100. The result of these calculations keeps on changing according to the changes that happen in the coin dominance.
