Bitcoin dominance is returning to 50% while the market is still volatile.
The SEC hit altcoins labeled as securities causing them to drop.
This is the prospect for BTC regaining its dominance if optimism grows.
In recent times, with strong and drastic actions from the U.S. Securities and Exchange Commission, the crypto market has had some transitions in terms of cash flow. Currently, Bitcoin (BTC) holds the largest share of the market, and the trend is slowly increasing.
According to Tradingview, with the recent drop of altcoins and Bitcoin‘s relative stability, Bitcoin’s market share has lately reached close to 50%, a new high since April 2021.
BTC dominance chart. Source: TradingView
Throughout the bear market era from 2018 to 2021, Bitcoins market share was consistently more than 50%, reaching 73% at the start of 2021.
This is also an easy trend to explain when altcoins are facing pressure from the SEC. The SEC specifically specifies 19 cryptos as securities in the lawsuits against Binance and Coinbase. Tokens such as MATIC, SOL, and ADA, which were once considered cutting-edge solutions, are currently facing a severe decline. Meanwhile, Bitcoin and some proof of work (PoW) tokens (no PoW tokens are currently listed as securities on the list mentioned by the SEC) are “outlawed.”
At the time of writing, BTC is trading at $25,800, and it is now the cryptocurrency with the lowest drop in the past week after the war that the SEC started.
BTC price chart. Source: TradingView
The US Securities and Exchange Commission filed against Binance and Coinbase within 24 hours, citing a slew of industry hours against complaints against two of the top names.
SEC head Gary Gensler has been more certain that most cryptocurrencies are securities and that the exchanges that provide them are, therefore, unregulated.
In the near future, this momentum may continue while the market is still in a cautious position with possible news. And, of course, a Bitcoin bull run is still possible if optimism returns.