The first cryptocurrency dominance index may continue to rise as the risks of price declines increase for many well-known altcoins. This opinion was expressed in an interview with CoinDesk by Marcus Thielen from Matrixport.
On Monday, September 18, Bitcoin’s market share returned to above 50%.
For more than two years, the figure was in the range of 39-49%. At the end of June, dominance jumped to a 26-month high of 52% after asset manager BlackRock filed for SEC application to launch a spot ETF based on digital gold. The investment giant was followed by similar requests from Valkyrie, Fidelity Investments, WisdomTree and Invesco.
The potential approval of Bitcoin exchange-traded funds has raised hopes among market participants for a massive influx of capital into the first cryptocurrency. Matrixport’s head of research believes digital gold is facing “potential buying pressure” due to potential ETF listings.
At the same time, altcoins are under pressure, Thielen noted. Among the risks for the segment, he named the sale of tokens from the bankrupt FTX exchange, the decline in revenues of the Ethereum protocol and the upcoming unlocks that will allow venture investors to sell the coins.
“This year, BTC peaked in July and ETH peaked in April. All these applications [на ETF] didn’t really benefit altcoins or even ether,” Thielen said.
Macro analyst Noelle Acheson pointed to another favorable factor for Bitcoin – the proposed listing rules for crypto exchanges by the New York Department of Financial Services (NYFDS). The changes introduce stricter rules for asset placement, while there are no regulatory obstacles for digital gold, she emphasized.
Let us remind you that on September 18, the price of Bitcoin exceeded $27,000.
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