Key Points
- Bitcoin’s dominance is on the rise, potentially surpassing 60% despite a negative Funding Rate.
- Major buyers are increasing their Bitcoin holdings, indicating a strong belief in its future potential.
Bitcoin’s dominance in the cryptocurrency market is growing steadily, with a potential to exceed 60% in the near future.
This surge in dominance has been observed despite the negative Funding Rate currently experienced by Bitcoin.
Understanding the Negative BTC Funding Rate
Bitcoin recently experienced a major, 33% decline in this bull market. This has pushed the Funding Rate for BTC into the negative, suggesting a potential buying opportunity for long-term investors.
Major investors, such as Blackrock and MicroStrategy, are capitalizing on this opportunity by increasing their Bitcoin holdings. This indicates a strong belief in Bitcoin’s future potential.
As the business cycle reaches a low point with the ISM index below 50, Bitcoin’s dominance in the market is expected to rise further.
Increasing Bitcoin Holdings
The number of Bitcoin addresses holding more than 0.1 BTC is steadily increasing. This growth signals not only an increase in Bitcoin’s dominance but also a surge in whale buying activities.
Over the past month, these whales have accumulated $23 billion worth of Bitcoin. Long-term holders, those planning to keep their BTC for the foreseeable future, also moved 404,448 BTC, valued at $22.8 billion, to their addresses.
This significant accumulation demonstrates a strong belief in Bitcoin’s future potential.
Meanwhile, Ethereum, the largest cryptocurrency after Bitcoin, initially rebounded strongly after this week’s market crash. However, it quickly lost those gains as Jump Trading continued to sell. The declining ETH/BTC chart suggests that Bitcoin’s dominance will likely continue to grow.
