- Crypto sentiment is neutral, but Bitcoin struggles to get above US$60K, while ETH and most major cryptos are in the red.
- Tron has gained market cap, surpassing Cardano as the 10th largest crypto, despite most other assets declining.
- Bitcoin’s dominance is increasing near its 2021 highs, contrasting with the decline of many altcoins.
While the crypto sentiment has moved into Neutral territory, based on the Fear & Greed Index, Bitcoin and comrades are struggling to gain momentum.
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BTC is down 2.56% in the past 24 hours and has been trading just below the US$60K mark for some time now, while ETH has lost 3% in the same time. Most major cryptos apart from Tron are currently in the red. Tron meanwhile has overtaken Cardano as the number 10 crypto, with a solid gain in market cap.
Swissblock: Bitcoin Not Following Stock Market Gains
Swissblock analysts wrote in a recent note that while the S&P 500 had its best week so far in 2024, Bitcoin has not followed that trend. At least for the time being it seems BTC is decoupled from stocks:
It has remained stagnant, still struggling with the $60k threshold and navigating through this environment, not correlated with traditional markets and other risk assets.
Swissblock But the analysts believe the “Permabull train” for crypto might be about to leave the station as the macroeconomic outlook, especially in the US, is improving. FOMC meeting minutes are due Wednesday and should provide some clarity around the US Fed’s policy stance.
Most market observers are “pricing in a rate cut and anticipating a dovish tone from Powell’s intervention on Friday”.
At the same time, momentum is still bearish, although it has somewhat increased, while the “risk indicator has decreased”, Swissblock writes.
Bitcoin Dominance Increasing, But Why Does It Matter?
Glassnode, on the other hand, points investors to the BTC dominance which is still increasing and now “commanding a staggering 56% of the total market capitalization”. Long-term holders are clinging on to their stacks and keep adding to their portfolio while short-term holders are taking losses, they write.
Despite the overall market contraction since the March all-time high, Bitcoin, Ethereum, and Stablecoins have shown a net positive capital inflow, with only 34% of trading days experiencing higher 30-day USD inflows, the analysts write.
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Long-term Bitcoin bull Benjamin Cowen, who frequently discusses BTC dominance, wrote on X that BTC dominance is a crucial metric that should not be overlooked. He wrote that Bitcoin remains near its 2021 highs, while many altcoins are closer to their 2022 lows, which shows Bitcoin’s relative stability and role as an anchor in the market.
In essence, Bitcoin’s dominance underscores its resilience and importance in the crypto market, not only as the first but also the largest crypto. The OG is still as relevant as ever, especially compared to the volatility and decline of many altcoins. This makes BTC dominance a key metric for understanding market dynamics.
