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Bitcoin market dominance jumps over 50% as GBTC gets a bump following ETF filing

Bitcoin jumps since BlackRock filing

Bitcoin dominance rose today to surpass the combined market cap of all the other cryptocurrencies. The pioneer cryptocurrency rose to this level for the first time since May 2021.

Bitcoin Market Cap enjoys increase

According to data from TradingView, the BTC dominance metric rose above 50% on Monday. This is the first time since May 2021, when Bitcoin’s price fell due to China banning crypto mining.

Source: TradingView

This feat was nearly entered in June 2022 following aggressive monetary tightening policies in the US as high inflation plunged the market.

The BTC dominance metric has been criticised for undervaluing the true market capitalization of Bitcoin since the metric included stablecoins in its calculations. Stablecoins are effectively digital dollars equivalent to the US dollar. Despite, stablecoins has also suffered a recession since the Securities and Exchange Commission forced Paxos to start winding down BUSD in February, erasing billions of dollars in tokens from circulation.

Bitcoin is now up 6% since last week and 1.62% over the 24 hours. The coin now trades at $26,764.

Read more: DOJ to file criminal indictment against Binance, predicts former SEC official

BlackRock filing pushes BTC and GBTC

Last week’s application by the $9.5T asset manager BlackRock caused a steer in the market. The form applied to the SEC for a Bitcoin exchange-traded fund (ETF). As a result market sentiment shifted in favour of Bitcoin and sent Grayscale’s Bitcoin Trust (GBTC) into an uptrend.

Before the markets closed on Friday, GBTC saw a gain of more than 12%, with share prices reaching $15.12, according to Yahoo Finance. In celebration of Juneteenth, a federal holiday marking the day word reached Texas that slaves had been freed, U.S. markets were closed on Monday.

This sentiment has been reinforced by recent market movements. According to analytics firm Glassnode, the so-called “shrimps” and “fish” in the Bitcoin ecosystem, have seen an increase in their holdings as of Monday, June 19. These entities reportedly absorbed 2,286 BTC every day, or the equivalent of 254% of the mined supply, over the previous month.

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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