The bitcoin price declined another five percent on Thursday as it endured a midweek slump that reduced its market share far below the 50 percent threshold. Several altcoins, meanwhile, posted impressive single-day returns, enabling the cryptocurrency market cap to add roughly $20 billion and return to a record level.
The bitcoin price declined five percent on Thursday, extending its midweek slump for another day. After reaching a 24-hour high of $17,828, the bitcoin price dropped as low as $15,603 before eventually leveling out at a present value of $16,701 on Bitfinex. At present, bitcoin has a market cap of $276.6 billion.
That bitcoin would suffer a moderate correction following its breakneck fourth-quarter rally should not be too concerning. However, investors should keep an eye on the bitcoin dominance index, a metric which measures bitcoin’s share of the cryptocurrency market cap relative to other coins.
Throughout most of its history, bitcoin has boasted an overwhelmingly-dominant share. Earlier this year, bitcoin dominance fell below 50 percent for the first time, and it briefly appeared as though ethereum could unseat bitcoin as the most valuable cryptocurrency. These fears were not borne out, and bitcoin’s second-half surge returned the flagship cryptocurrency to its dominant position in the market.
However, this week bitcoin’s market share has plunged below 44 percent, its lowest mark since the bitcoin cash hard fork in August.
The recent ethereum price rally has contributed to the bitcoin’s waning dominance, although it has not been the sole culprit. On Thursday, the ethereum price posted a two percent gain and is currently trading at $828 on Bitfinex. Ethereum’s market cap currently sits just below $80 billion, while its market share has increased to 13 percent after briefly slipping below 10 percent earlier this month.
The bitcoin cash price endured a severe correction on Thursday, plunging by 26 percent from the all-time high it set on Wednesday in a wave of euphoric trading predicated on the coin’s addition to Coinbase and GDAX. However, even after this double-digit retrace, bitcoin cash is still trading above $3,500 on Bitstamp, representing a weekly increase of $1,600. Bitcoin cash currently has a market cap of $60 billion, giving it a market share of approximately 10 percent.
Once again, the altcoin markets posted a moderate advance despite mixed performances from individual cryptocurrencies.
The ripple price returned the best single-day performance of any top-tier coin, rising nearly 29 percent to bring it within striking distance of dollar parity. At present, ripple is trading at a $0.94, which translates into a $36 billion market cap.
The litecoin price declined by more than four percent, perhaps due to the news that its creator, Charlie Lee, had sold his entire litecoin balance and donated the proceeds. Although Lee maintains that he is just as committed to litecoin development as ever, some investors have questioned whether that will be true since he no longer has a direct financial incentive to promote the project.
The IOTA price declined by nine percent following Wednesday’s double-digit rally, while seventh-ranked dash exploded by 17 percent to raise its price near $1,500. EOS slipped by four percent, and NEM added five percent to raise its market cap above $8.5 billion.
Monero rounded out the top 10 with a 12 percent increase to $455, perhaps due to fears of impending cryptocurrency tax legislation in South Korea.
Write to Josiah Wilmoth at josiah.wilmoth(at)CCN.com.
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Last modified: March 4, 2021 5:02 PM