Bitcoin (BTC), the world’s largest digital currency, jumped above $60,000 yesterday after a significant rise in demand. The cryptocurrency is currently trading near $60,200 with a market cap of more than $1.1 trillion.
According to the latest data published by Coinmarketcap, the market dominance of Bitcoin has plunged since the start of this year. BTC’s current market dominance stands at around 54%, which is down from 70% in January 2021. The market dominance of BTC has reached its lowest level since April 2019.
The latest surge in XRP and Binance Coin has played a major role in Bitcoin’s market dominance decline. XRP, the world’s 4th largest cryptocurrency, has jumped nearly 90% in the last 7 days. Binance Coin (BNB) touched an all-time high of $570 today as the total market cap of the digital currency jumped above $87 billion.
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BTC’s declining market dominance is not the only challenge for the cryptocurrency, the supply of Bitcoin at leading digital exchanges is dropping sharply as Bitcoin whales have accelerated their BTC accumulation. “The percentage of Bitcoin’s supply held by whale addresses with 100k or more BTC has risen from 0.76% 11 weeks ago, to 2.20% today, an 11-month high. Meanwhile, the smaller 1k-100k BTC addresses have dropped from 42.4% to 39.5% in the same 11 weeks,” crypto analytics firm, Santiment mentioned in a recent Tweet.
$1 Trillion Support for Bitcoin
Finance Magnates earlier reported a surge in Bitcoin network activity above its $1 trillion market cap. Glassnode, a blockchain analysis firm, mentioned that BTC has solidified its position as a $1 trillion asset. Willy Woo, a well-known Bitcoin analyst, mentioned on Twitter that BTC’s $1 trillion market cap is acting as strong support for the digital currency.
Institutional adoption of Bitcoin has increased significantly in the last few months. Tesla, Square, MicroStrategy and Grayscale announced the accumulation of BTC in large amounts. Last week, a leading Asian technology firm, Meitu announced that the company has nearly $100 million worth of cryptocurrency assets including Bitcoin and Ethereum. MicroStrategy now has more than 90,000 BTC.