The Bitcoin Dominance Index looks set to solidify its position as many leading altcoins grapple with potential devaluation. Markus Thielen of Matrixport expressed this perspective in a recent interview with CoinDesk. As of the start of the week on September 18, Bitcoin’s market share once again surpassed the 50% mark. For a prolonged period, this percentage oscillated between 39% and 49%. However, by the end of June, Bitcoin’s share had surged to 52%, following BlackRock’s announcement of a Bitcoin-based ETF launch.
The potential approval of a Bitcoin ETF has ignited optimism among market players, many of whom anticipate a significant inflow of investments into Bitcoin. Thielen posits that the prospective ETF launch is drawing investors towards Bitcoin. Conversely, altcoins are feeling the heat. Thielen pointed out several risk factors for this sector, including the liquidation of tokens from the insolvent FTX exchange and a dip in Ethereum’s profitability.
Macro analyst Noelle Acheson shed light on another favorable development for Bitcoin: the New York Department of Financial Services’ proposed regulations for crypto exchanges. While these guidelines mandate more rigorous standards for asset staking, they don’t pose any hindrance to Bitcoin. It’s worth noting that on September 18, Bitcoin’s price surpassed $27,000.
