Bitcoin's "Vampire Effect" Upgraded Again! Market Share Surges Past 65%, Hitting a Four-Year High!
TradingKey - Bitcoin's market share has reached new heights last seen in 2021. The upward trend may continue, possibly reaching 70%.
On Tuesday (May 6), Bitcoin's (BTC) market share climbed, breaching 65% for the first time since January 2021. Currently, with limited new funds entering the market, Bitcoin's share could keep rising. The 70% mark is critical to watch.
Bitcoin market share trend chart. Source: TradingView.
Bitcoin's market share demonstrates a "bloodsucking effect." This means funds are moving from altcoins to Bitcoin. Since January 2023, Bitcoin's market share has steadily increased. Meanwhile, Ethereum (ETH) and other altcoins have seen a decline.
High Bitcoin market share indicates increased confidence in Bitcoin. It suggests a bearish outlook on altcoins. However, this trend may not last. Historical data from 2019 and 2021 shows that when Bitcoin's market share approaches 70%, funds often flow back into altcoins for better returns. This can spark a rally in the crypto market.
Trends in market share of BTC, ETH, and other altcoins. Source: CoinMarketCap.
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