The run of the crypto market in November-December 2020 led to a sharp increase in the bitcoin dominance index. This figure rose to the highest level since the end of last year and is close to 70%.
The rise in BTC dominance has occurred not only as a result of a rally in the crypto market over the past two months but also amid a panic outflow of capital from altcoins.
Due to the first factor, Bitcoin soared above $ 24,000, beating the performance of the famous December 2017 race. In December of this year, capital began to enter the largest digital currency more aggressively.
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First of all, this is due to the activity of institutional capital. The inflow of investments in altcoins was much smaller, which strengthened the position of bitcoin.
The BTC Dominance Index rose sharply this week, as some of the capital moved to Bitcoin due to the troubles of the Ripple company. Recall. XRP token plunged more than 40% this week after the Securities and Exchange Commission (SEC) accused Ripple of selling $ 1.3 billion in unlisted securities.
Note that six months ago, on the contrary, many analysts bet on reducing the share of bitcoin on the crypto market. According to their forecasts, capital should more actively go not to BTC, but altcoins. Even such a scenario was not ruled out, in which the bitcoin dominance index would drop to 60%.