Last Updated: August 21, 2023
• Crypto markets experienced panic selling, which resulted in Bitcoin’s “Dominance” dropping and altcoins gaining value.
• The market panic was blamed on Evergrande’s bankruptcy filing.
• The week of March 13 saw a large daily candle in BTC Dominance due to several US banks collapsing.
Bitcoin Dominance Plummets Amid Crypto Market Mayhem
Crypto markets saw panic selling on August 17, resulting in Bitcoin’s “Dominance” dropping and altcoins gaining value relative to the market leader. The sell-off was blamed on Evergrande’s bankruptcy filing.
What is Bitcoin Dominance?
Bitcoin Dominance (BTC.D) is calculated by dividing the BTC market by the total crypto market cap, providing a measure of Bitcoin’s strength against altcoins. At the time of writing it was at 49.53% of the crypto market and on track to test 49.48% support – should this break, 48.93% would be the next significant support level for BTC dominance.
March ‘Banking Crisis’ Crash
Since January, BTC dominance had been trending higher but since late June has been trending downwards – with one notable exception being during the week commencing March 13 when it moved from 43.61% to close at 47.52%. This was due to several US banks collapsing and generated a narrative that investors should ditch cash for ‘hard assets’ such as Bitcoin and gold due to their immunity from printing money by central banks.
Evergrande Bankruptcy Filing Flash Crash
The latest flash crash on August 18th was blamed on news that Chinese property developer Evergrande had filed for bankruptcy protection – resulting in $62 billion being wiped from the total crypto market cap alone – although it remains unclear if this event caused or exacerbated existing bearish sentiment in markets or not..
Comment From Crypto Capital Venture Founder
Commenting on the situation, Dan Gambardello (Founder of Crypto Capital Venture) predicted further drops in BTC dominance ahead: “Back under 50% BTC dominance will never be the same… New lows are waiting”.