Bitcoin Rejected at $40K, Altcoins Suffer as BTC Dominance Increasing (Market Watch)

Bitcoin Rejected at $40K, Altcoins Suffer as BTC Dominance Increasing (Market Watch)

After trading above $40,000 for a few days, bitcoin has slid beneath that level and even dipped to $38,000. However, its dominance over the market continues to increase as most alternative coins have suffered even more lately.

BTC Slips Below $40K But Dominance Rises

Ever since the early weekend drop to below $35,000, the primary cryptocurrency started to rapidly increase in value, which was fueled by positive news from El Salvador and India.

Consequently, BTC even spiked to and beyond $40,000. The bulls kept pushing the asset upwards, which resulted in a near one-month high of $41,375, as reported.

However, bitcoin’s endeavor above $40,000 was halted at this point. The bears intercepted the move and drove the cryptocurrency south. In the past 24 hours, the situation worsened slightly, and BTC dropped to just over $38,000.

Nevertheless, bitcoin has recovered around a thousand dollars since then and currently sits above $39,000.

Its market dominance has increased rather well in the past 24 hours as the altcoins are in even worse shape. As of now, the metric comparing bitcoin’s cap with the rest of the market is up to above 45%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Altcoins Suffer More

As mentioned above, the alternative coins haven’t really enjoyed the past 24 hours. Ethereum has continued its freefall by another 4% decrease. As a result, the second-largest crypto is down below $2,450.

BNB is down by about 2% and struggles below $360. ADA (-2.4%), DOGE (-2.4%), XRP (-2%), DOT (-2.5%), UNI (-3%), BCH (-1%), and LTC (-2%) have also lost some steam since yesterday.

Solana is the only larger-cap altcoin in the green with a 3% increase to above $40. This comes after a listing on Coinbase Pro.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Apart from AMP, which is up by 25% in 24 hours and over 100% in a week, most of the other lower- and mid-cap altcoins are slightly in red as well.

Minor gains are evident from SHIB (-9%), The Graph (-8%), Chiliz (-8%), Polygon (-6%), UMA (-6%), Klaytn (-6%), and more.

Ultimately, the cryptocurrency market cap is down by a little less than $100 billion in a day to just over $1.6 trillion.

editorial staff

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