Bitcoin Dominance Hits Two-Month High as Crypto Market Declines

Journalist:
February 28, 2018

The cryptocurrency markets succumbed to another mid-week slump on Wednesday, with the majority of top-tier coins posting minor declines. Meanwhile, Bitcoin dominance rose to a two-month high as investors continued to consolidate their holdings back into the flagship cryptocurrency.

Source: CoinMarketCap

At present, the cryptocurrency market cap is valued at $452.4 billion, down from $459.6 billion on Tuesday. This represents a single-day decline of approximately two percent.

Bitcoin Price Sinks After Brief Rally Past $11,000

The Bitcoin price had entered the day on an upward trajectory, and it continued to ride this bullish wave past the $11,000 barrier, eventually rising as high as $11,065. However, Bitcoin met resistance at that mark, and before long, the Bitcoin price began to retrace. Ultimately, the Bitcoin price plunged more than $400 on Bitfinex and is currently trading at $10,599. This represents a single-day decline of about one percent and leaves Bitcoin with a $181.5 billion market cap.

Bitcoin Price Chart

Despite experiencing a minor pullback against the dollar, though, Bitcoin continued to rise against its peers. On Wednesday morning, Bitcoin dominance — the cryptocurrency’s share of the total market cap — hit 40 percent for the first time since late December, indicating that trader and investor capital is beginning to rotate back into the flagship cryptocurrency.

Source: CoinMarketCap

Ethereum Price Tracks the Index

The Ethereum price matched the index on Wednesday, falling two percent to $865 on Bitfinex after briefly testing $900 the previous day. At present, Ethereum has an $85.3 billion market cap, which translates into an 18.6 percent market share.

Ethereum Price Chart

EOS, IOTA Swim Against the Current

The altcoin markets were characterized by widespread declines, but two large-cap tokens managed to swim against the current.

Altcoin Price Chart

Ripple, the third-largest cryptocurrency by circulating market cap, posted a three percent decline, reducing its price to $0.90. Bitcoin Cash, ranked fourth, was hit with a four percent pullback that forced its price down to $1,225.

Litecoin — the only top-tier coin to decline on Tuesday — deepened its retreat on Wednesday. At present, the Litecoin price is valued at $210, representing a daily decline of four percent.

NEO engaged in a similar movement, declining four percent to $134, while Cardano and Stellar each performed slightly worse, posting 24-hour declines of five percent and six percent, respectively.

Two top-tier cryptocurrencies, however, managed to rise against the dollar even amid the general market decline. EOS, ranked seventh, rose three percent to $8.62, while IOTA, ranked 10th, rose one-half-of-one percent to $1.90.

Featured image from Shutterstock.

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.