Bitcoin Dominance Unlikely To Decline Anytime Soon Says CryptoQuant CEO

The market capitalization of Bitcoin has returned to $1.859 Trillion, which can be considered among the highs of the year.

This growth can be largely attributed to the market dominance of Bitcoin which has strengthened due to the influx of institutional investors, an increase in the usage of cryptocurrencies, and favorable macroeconomic factors.

The one-year chart shows that the price was steadily rising and has had periods of consolidation followed by strong movements.

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Bitcoin Current Market Performance

The fact that Bitcoin has been able to hold the market cap near prior peak support affirms its market dominance.

As it stands now, it is valued at $1,859 Trillion, and there is still huge demand from both small investors and large companies. Although a slight decline has occurred in the last two weeks, the general sentiment toward the BTC market remains bullish.

Growth Trends Over the Year

The first quarter of 2024 proved to remain generally stable on the Bitcoin market, with a cap of approximately $1 Trillion. It was followed by an early phase paving the way for the even more upturn witnessed in April, where BTC’s market capitalization surged to over $1.5 Trillion.

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It was primarily driven by new Bitcoin ETFs listing and rising institutional demand that led to new higher levels of BTC.

In the middle of the year, it followed a consolidation pattern with fluctuations observed in July, August, and September. This provided the market with time to ratify the previous gains before continuing with its bullish run.

In October, the market capitalization exceeded $1.8 Trillion, and investors, as well as analysts, have turned optimistic as the year comes to an end.

Institutional Demand Drives Growth

One of the main reasons for Bitcoin’s continuous market growth is the growing interest of institutional investors. Some organizations, including MicroStrategy, Marathon Digital, and others, are increasingly purchasing large quantities.

Marathon Digital Holdings (MARA) purchased an additional 703 BTC, adding to their earlier acquisition of 5,771 BTC. Other firms including MicroStrategy Inc., Semler Scientific Inc., and Rumble among others, are persistently purchasing Bitcoin.

Bitcoin’s Dominance Remains Unchallenged

Ki Young Ju, CEO of CryptoQuant, said that he does not foresee any drop in the dominance of Bitcoin in the cryptocurrency market anytime soon. He says that when Bitcoin’s market cap surged by 37% recently. Moreover, large-cap altcoins were up by only 16% while the mid-and small-cap tokens were up only by 10%.

This suggests that bitcoin is still dominating the overall crypto market and remains the most popular product among investors ranging from both retail and institutional investors.

Impact of Profit-Taking on the Bitcoin Rally

However, recently, the rally on Bitcoin has slowed down. Experts stated that is due to people taking their profits. Many short-term investors who entered the market earlier this year, particularly those who bought above $56,000, have opted to lock in gains.

Galaxy Digital CEO Mike Novogratz described this as “normal profit-taking,”. They emphasize that long-term holders must remain committed to their positions, providing stability to the market.

These phases of profit-taking have therefore been accompanied by minor pullbacks. Nevertheless, the overall sentiment remains positive. Since HODLers will keep holding their bitcoins in the long term, this market should continue rising in the next few months.