Bitcoin, the world’s largest cryptocurrency, saw bullish sentiment from traders in the last 24 hours as the price of BTC gained nearly 12% within a single day. The latest price rally has caused a sharp increase in the market dominance of Bitcoin as the world’s most valuable digital asset now accounts for more than 45% of the overall market cap of cryptocurrencies.
According to the latest data published by Coinmarketcap, BTC’s market dominance spiked above 45% on Monday, its highest level since May 2021. The market dominance of Bitcoin reached a low of 39% on 17 May after a significant rally in altcoins.
The latest surge in Bitcoin’s market dominance indicates that BTC is performing better than other cryptocurrency assets in terms of price gains. BTC currently has a market cap of approximately $740 billion. The cryptocurrency is now targeting the key price level of $40,000.
“Bitcoin and Ethereum are seeing their respective supply ratio on exchanges moving lower since the initial crypto market-wide dump happened 3 weeks ago. Traders can be encouraged that this indicates less likelihood of further major selloffs,” crypto tracking platform Santiment mentioned on Twitter.
Musk and Bitcoin
One of the major reasons behind the latest Bitcoin rally is Elon Musk’s announcement about Tesla’s BTC holdings. The CEO of the electric car maker said that his company only sold 10% of its Bitcoin holdings and the rumors about extensive selling of BTC from Tesla are inaccurate. “Tesla only sold 10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said.
Earlier this month, Bitcoin and other cryptocurrency assets received support from State Street Corporation, one of the oldest financial firms in the US. The company announced the launch of a dedicated cryptocurrency unit to expand its digital finance capabilities.
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