Benjamin Cowen, founder of Into The Cryptoverse, doubts that Bitcoin’s (BTC) market dominance will return to the levels of December 2020, before the asset’s price surged. Cowen stated: “I don’t think it’s going to go back to 70%; my goal for Bitcoin dominance was 60%.”
Currently, Bitcoin dominance stands at 57.36%, up 4.25% since mid-July, according to CoinMarketCap data. Since Jan. 1, it’s up 11.20%. Cowen explained that during major altcoin seasons like the one in 2021, Bitcoin dominance, the ratio of Bitcoin’s market cap to the entire crypto market, tends to decline but gradually rise again.
However, Cowen remains confident that Bitcoin will not reach its previous levels of dominance in this cycle. Cowen believes there is ample room for Ethereum and other cryptocurrencies, predicting that Bitcoin will move towards 60% dominance between September and December.
Traders often view Bitcoin dominance levels as a signal to sell Bitcoin and invest in alternative assets such as altcoins. In December 2020, Bitcoin dominance reached 70.23% before the price surged by around 220% to $61,283 in March 2021, according to CoinMarketCap data.
Cowen emphasized that Bitcoin dominance is now more complex than it was in 2019, when it peaked just above 71%, due to the smaller market cap of stablecoins at the time. He recommended using a combination of Bitcoin dominance and stablecoin Tether (USDT) dominance to assess “flight to safety dominance.” In the recent interview, he mentioned that this combined figure is around 63%, similar to levels in June 2019, before the Federal Reserve cut interest rates. Currently, the combined dominance of USDT and Bitcoin stands at 63.07%.
