- Bitcoin’s dominance rises to 56.2%, outpacing Ethereum and altcoins, as stablecoin share declines to 7.3%.
- Long-term holders see profits surge with a 751.1 realized ratio, signaling a potential shift in market dynamics.
- Buy-side inflows increase to $91.8 million, marking a potential return to market equilibrium after years of sell-side pressure.
As of August 18, 2024, Bitcoin’s market dominance has risen to 56.2%, solidifying its position as the leading digital asset. This surge in dominance reflects growing confidence in Bitcoin over other cryptocurrencies.
Over the past year, Bitcoin’s increasing share of the market has led to a noticeable shift, with both altcoins and Ethereum showing slight declines. Ethereum’s market dominance currently sits at 15.3%, while altcoins account for 21.2% of the market. Stablecoins, despite their steady performance in the past, have also experienced a decrease, now holding 7.3%.
Long-Term Holders Show Resilience Amid High Profitability
Long-term Bitcoin holders (LTH) remain a substantial force in the market, continuing to accumulate the asset despite its fluctuations. As of August 2024, the realized profit/loss ratio for long-term holders has reached an impressive 751.1.
This indicates that these investors are realizing far more profit than loss, mirroring peaks seen in previous years like 2017 and 2021. Historically, such high ratios often suggest that a shift in market dynamics may be on the horizon.
The cyclical nature of Bitcoin’s market movements shows that heightened profitability is typically followed by corrections, although long-term holders’ strong conviction remains evident.
Spending Behavior Signals Continued Accumulation in 2024
Accumulation has been the dominant behavior of Bitcoin’s long-term holders throughout 2024. Their spending activity is minimal, highlighting a preference for holding rather than selling. Currently, the supply of Bitcoin held by long-term holders has grown to approximately 13 million BTC.
Despite the market’s fluctuations, long-term holders’ cost basis remains lower than the asset’s market price. This ongoing trend of accumulation, combined with low spending levels, has contributed to the overall stability of the Bitcoin market. Notably, this behavior has also helped to reduce sell-side pressure, further strengthening Bitcoin’s position in the broader crypto market.
Buy-side Inflows Hint at Possible Market Stabilization
Recent data shows that buy-side inflows have gained momentum, signaling a potential equilibrium in the market. As of August 16, 2024, buy-side inflows were around $91.8 million. This trend suggests that the intense sell-side pressure seen from 2021 to early 2023 has waned.
The balance between buying and selling now leans slightly toward accumulation, suggesting improved market sentiment. The market’s return to equilibrium highlights growing investor confidence and hints at a possible stabilization period for Bitcoin in the near future.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
