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Bitcoin Dominance Remains High As Demand Continues to Increase

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Bitcoin lying on the table

Demand for Bitcoin seems to have helped the virtual currency remain a leader in the market. Nowadays, the global market capitalization of this asset remained high compared to other virtual currencies.

During a conversation with UseTheBitcoin, Konstantin Anissimov, the Executive Director at CEX.IO, stated that there is a continuous demand from both retail and institutional investors. 

Bitcoin Continues Attracting New Investors

Since March 2020, Bitcoin didn’t stop growing. The virtual currency moved from below $4,000 to over $58,000 in recent hours. One of the main characteristics of the current bull run is also related to how high Bitcoin’s dominance has been. 

According to CoinMarketCap, Bitcoin dominance remains above 61% and reach peaks of 69% throughout the last months. The lowest point for Bitcoin’s dominance during this bull run was in September 2020 when the virtual currency hit a dominance of 56%. 

About the current situation in the cryptocurrency market, Konstantin Anissimov said:

“Bitcoin’s dominance in the market is not about to be pulled down as many analysts have suggested as the premier cryptocurrency is continuously seeing increased demand, from both retail and institutional investors.”

Indeed, there are several institutional investors that would like to get access to the largest virtual currency in the world. For example, JPMorgan Chase filed an application with the U.S. Securities and Exchange Commission (SEC) in order to launch new investment tools to track the performance of companies with exposure to BTC.

Although this is not a direct way of getting access to BTC, it certainly allows firms to get indirect exposure to the market. In the last months, several companies have decided to invest in Bitcoin. MicroStrategy, Tesla, MassMutual and Square are just some of these companies. 

Anissimov has also spoken about Ethereum (ETH), the second-largest virtual currency. He discussed Ethereum’s high fees and how several investors and users preferred to use other alternative networks. Moreover, he mentioned that some miners are currently protesting due to their low profitability. 

Bitcoin was able to surpass $58,000 again in the last hours while Ethereum remains at a price of $1,800 per coin. Binance Coin (BNB), and Uniswap (UNI) are also operating positively in the last 24 hours. Litecoin (LTC) became the largest gainer among the top 10 after a price increase of almost 6%. 

Many investors are now excited for Bitcoin to reach $60,000 and continue its move towards new all-time highs.

Jonathan Gibson

Jonathan Gibson

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