Bitcoin Dominance Climbs Back Above 63% As Investors Seek Refuge From Altcoins’ Plummet

Crypto Market Sobers Up, Causing Minor Retracement As Bitcoin Holds Above $8,500

Over the weekend, there was a market price capitulation. Led by Bitcoin, a majority of cryptocurrencies dropped deep into the red zone. The drop has since seen the total market cap drop from highs of over $307 billion to current lows of $280 billion.

Although Bitcoin has dropped below $10K and into the $9,700- $9,800 range. it is not the worst hit. In fact, investors have been seeking refuge in it as altcoins bleed heavily.

A majority of altcoins have dropped by more than 5%. Ethereum for instance, the world’s largest altcoin, has fallen by 8% at the time of writing this. Others including XRP and Bitcoin Cash have fallen by more than 10%. Volumes are still at record highs suggesting this could be a possible sell-off.

These drops have seen most investors jump out of altcoin positions and seek a more stable Bitcoin. At the time of writing this, Bitcoin is only down by 2.50%. As more and more investors make a Bitcoin entry, its market dominance has been climbing and is now to previous ranges of 63%.

At the end of last week when altcoins were pumping, Bitcoin’s dominance was clinging on the 60% mark. This is a psychological position that would have opened up room for greater altcoin dominance and a full-blown altseason.


What Triggered The Drop?

It remains unclear what triggered the market sell-off. There is however those who believe that there is a threatening dump expected this week. As we reported, the U.S Marshals a few weeks ago announced they would be selling 4,000 BTC they confiscated mid-February.

Market panic could have easily seen investors dump their assets in anticipation of a price fall. After Bitcoin investors began selling, altcoin holders panicked as well and began to dump. This has now grown to a full-on bear market.

Hopefully, crucial support will hold and the market can bounce back in the days to come. For Bitcoin, its immediate support to ensure it gets back above $10K is $9,700. Stronger support is expected at $9,500 but this will make the bounce back to $10K much harder.

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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.