📰 Table Of Contents
Bitcoin Market Dominance Reaches Three-Year High
Bitcoin has shown resilience in comparison to the broader digital assets market, maintaining a dominance metric of 55.3%, the highest level since April 2021. Matteo Greco, a research analyst at digital asset investment firm Fineqia International, noted that Bitcoin’s market cap dominance has hit its highest level in three years despite recent sell-offs and market volatility. Trading volumes have also remained robust.
Bitcoin Trading Volumes and Performance
- BTC Spot ETFs recorded a weekly trading volume of approximately $16.2 billion.
- Since its inception, the cumulative trading volume stands at approximately $212 billion.
- Bitcoin ended the week at around $65,650, experiencing a 5.3% decline from the previous week’s closing value.
Market Sentiment and Price Movements
The weekend’s price drop was attributed to geopolitical tensions in the Middle East. However, market sentiment improved after an announcement of a temporary halt in hostilities among the involved nations. The upcoming halving event, scheduled for the night between April 19th and 20th, has drawn attention.
US Inflation Data Impact
Recent US inflation data surpassed expectations, leading to a revision in market participants’ rate cut projections for 2024. The presence of inflation levels surpassing central banks’ targets might result in a prolonged period of tighter monetary policy, affecting risk-on assets.
Investor Behavior and Market Outlook
Investors are displaying caution and engaging in profit-taking following the strong uptrend witnessed in Q4 2023 and Q1 2024. Digital asset investment products witnessed minor outflows, with Bitcoin experiencing outflows but maintaining positive inflows month-to-date.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
