The world of cryptocurrency is yet again witnessing the rising dominance of Bitcoin. Now, the largest cryptocurrency has a market cap of 44 percent, which is the highest since the highs of the bull market started in October. The renewed dominance of Bitcoin in the realm of cryptocurrencies shows how the fall of the stablecoin TerraUSD earlier in May has wreaked havoc on small crypto tokens like Solana and Avalanche. While Bitcoin was down by about 1.5 percent, Avalanche dropped almost 11 percent, making the former a safer haven compared to the latter.
Bitcoin in recent times has also been outperforming Ether, which is second-largest crypto token currently. This has rocked Ether by concerns about unexpected setbacks in its plan to make the underlying blockchain technology comparatively less energy intensive. However, despite it outperforming Ether, Bitcoin continues to face certain challenges, such central bank regulations and controls across the globe. The recent decline in Bitcoin price was small compared to what other cryptocurrencies have suffered, it came when global equities are progressing. Over the last few months, it’s seen that Bitcoin is moving in tandem with stock markets.
Besides, it’s important to note that large Bitcoin holders, which are known as “whales” in industry parlance, are moving their crypto tokens to exchanges. This may indicate that they are ready to trade. Also, the ratio of exchange inflows derived from these Bitcoin holders to the total value of inflows is now at the highest level since August 2019. Let’s see if this move of the whales causes any price correction—something that happened in the past when they moved their tokens to exchanges.
