Bitcoin Dominance Soars as These Altcoins Bleed Out

 Bitcoin Dominance

BTC's dominance in the market has surged by more than 2% within a span of days.

Bitcoin experienced heightened volatility on Friday, witnessing a rapid drop to $42,600 before bouncing back to $44,400, ultimately settling just below the $44,000 mark.

Over the past 24 hours, numerous altcoins, including AVAX, ADA, SOL, and LINK, have seen significant declines in their prices, leading to an unfavorable trend in the market.

Bitcoin's Dominance Ascends:

In less than a week into the new year, BTC has undergone substantial price fluctuations. The week kicked off with a surge from $42,500 to a 21-month high at nearly $46,000 on Tuesday.

However, the momentum took a hit when reports emerged about the SEC's intention to reject all pending ETF proposals, causing a sharp downturn. Within minutes, Bitcoin's value plummeted by almost $5,000 to $41,500.

The bulls intervened at this juncture, initiating a recovery for BTC. This resulted in a price spike to $44,800 on Friday, but the cryptocurrency struggled to sustain its momentum, slipping back to $42,500 on multiple occasions.

The subsequent market movements have brought Bitcoin's current trading position just below $44,000. While its market capitalization has dipped below $860 billion, its dominance over altcoins has surged to over 52% on CoinMarketCap (CMC), a notable increase from the sub-50% metric observed at the year's outset.

Altcoins Experience a Downturn:

Following the Wednesday crash, most altcoins enjoyed a positive trend in recent days, but the market sentiment has now taken a sharp turn. Solana, Cardano, Avalanche, and Chainlink have emerged as the leaders in daily losses, experiencing declines ranging from 5% to 8%. Consequently, SOL is priced below $100, ADA is on the verge of dropping below $0.5, AVAX stands at $35, and LINK is trading below $15.

Other major altcoins, including ETH, BNB, DOGE, XRP, MATIC, TRX, and TON, have also seen declines. LDO stands out as an exception among the top 36 altcoins, registering a notable increase of 9%, pushing its value to $3.33.

The overall crypto market cap has seen an overnight decline of over $30 billion, now resting at $1.640 trillion on CMC.

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