The post Bitcoin Dominance Soars to 56%, Long-Term Holders Remain Resolute appeared on BitcoinEthereumNews.com.

Iris Coleman Aug 21, 2024 03:08 Bitcoin’s market dominance reaches 56% as long-term holders continue to accumulate, despite recent market volatility. Short-term holders face significant losses. Bitcoin (BTC) continues to expand its dominance in the cryptocurrency market, now commanding a staggering 56% of the total market capitalization, according to Glassnode Insights. The data reveals that long-term holders remain steadfast in their conviction, contributing to significant accumulation pressure beneath the surface. Market Overview Since the cycle low established in November 2022, capital has increasingly accrued towards major assets in the digital asset risk curve. Bitcoin’s dominance has surged from 38% in November 2022 to 56% today. Ethereum (ETH), the second-largest asset, has seen a slight decline in dominance, dropping 1.5% over the past two years. Meanwhile, stablecoins and the broader altcoin sector have experienced more pronounced declines of 9.9% and 5.9%, respectively. This shift in market dynamics is further highlighted by the net capital change across major assets. Bitcoin, Ethereum, and stablecoins are all exhibiting a net positive capital inflow. Despite the general market contraction since the March all-time high (ATH), only 34% of trading days have seen a larger 30-day USD inflow. Long-Term Holders Long-term holders have been locking in a consistent $138 million in profit per day amidst recent market turbulence. This sell-side pressure is indicative of the daily capital inflows required to absorb supply and stabilize prices. Despite choppy market conditions, prices have remained relatively flat over the last few months, suggesting a form of equilibrium is being reached. The Realized Profit/Loss Ratio for long-term holders remains elevated but is experiencing a substantial decline from its peak. This indicates that profit-taking activities by long-term investors are cooling off. During the March 2024 ATH, this metric reached levels similar to prior market tops, suggesting a potential for future uptrend…

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Filed under: News - @ August 21, 2024 3:15 am