The Bitcoin dominance index reached an important level of 65.09%, according to the latest diagram from TradingView. Consequently, the leading cryptocurrency additionally approved its dominance over the cryptocurrency market.
This indicator is a key indicator that traders and investors are used to measure the BTC force in relation to altcoins. Over the past few months, the dominance of bitcoins is growing steadily.
The diagram shows that this dominance has grown from less than 48% to more than 65%. This growth suggests that more capital enters Bitcoin than in altcoins.
The prelude of the bull?
This growing dominance also shows that investors’ trust in bitcoins is growing in indefinite market conditions. In addition, this indicates that they prefer the relative stability of the leading cryptocurrency compared to most altcoins who demonstrate greater price volatility.
Historically, the growth of bitcoins dominance occurs in the early stages of crypto -bunch or consolidation in the market, when investors move funds from Altcoins back to BTC.
An increase in this metric may also mean that traders are preparing for a massive change in bitcoins, which can be a breakthrough for the new price.
The volume of Bitcoins trade is 23.91 billion dollars, which indicates a steady percentage and trading activities in a crypto acting.
Altcoins lose their positions on bitcoins
An increase in the dominance of bitcoins also means that altcoins are ineffective compared to BTC. Their inefficiency can be associated with many factors, such as the perception of institutions, that Bitcoin is a “reserve currency” of the cryptography market.
Other factors include a “flight to a safe place” and normative problems. During periods of volatility in the cryptocurrency market, investors usually promote more funds in bitcoins.
They consider this the most liquid and established crypto acting, a period known in crypto circles as a “flight to a safe place”.
In addition, new altcoins are faced with more regulatory control than bitcoins, which is a more established and old digital currency.
When there are uncertainty related to altcoins, investors move funds from them to bitcoin.
The combination of the level of growing dominance and strong volume assumes that investors are optimistic against leading digital assets when we move further a year.
Another key driver in the latest bull bias for bitcoins is the recent U.TODAY report that New Gampshire became the first US state to have been the strategic reserve of bitcoins.
