The analyst predicted the growth of Bitcoin dominance
Date: 2023-09-20 Author: Karina Ziganova Categories: BLOCKCHAIN
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%. Dominance jumped to a 26-month high of 52% in late June after asset manager BlackRock filed with the SEC to launch a digital gold spot ETF. 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, a decrease in the income 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 [ETF] bids haven't really benefited 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.
On September 18, the price of Bitcoin exceeded $27,000.
