Bitcoin's Dominance Surges Past 60% Again as Altcoins Plunge
Bitcoin asserts its dominant position against altcoins. The queen of cryptos sees its market share surpass the symbolic threshold of 60% on February 2, while altcoins are experiencing significant losses due to new trade measures imposed by President Trump.
Bitcoin Resists Better in a Bear Market
The crypto market is currently undergoing a general correction, with Bitcoin showing a decline of 7.3% over the last seven days, according to CoinMarketCap.
This performance, although negative, demonstrates better resilience compared to the main alternative cryptos. Ether has dropped by 18%, XRP has plunged by 19.95%, while Solana has recorded a marked drop of 14.3%.
This trend occurs in a tense macroeconomic context, marked by the imposition of new tariffs by the Trump administration. These measures, which include 25% taxes on Canadian and Mexican imports, as well as 10% on Chinese products, have caused a shockwave in the financial markets.
In the face of these uncertainties and fears of increased inflation, investors are favoring safe havens such as U.S. Treasury bonds, neglecting riskier assets.
Mixed Outlook for the Crypto Market
Industry experts anticipate new turbulence in the short term. Van Nuener, a recognized trader and analyst, warns of a possible domino effect following the opening of the U.S. futures markets.
Arthur Hayes, co-founder of BitMEX, had already predicted in December 2024 a post-inauguration correction, estimating that the euphoria surrounding Trump’s pro-crypto promises would fade in the face of legislative realities.
The situation is all the more tense as the American tech sector is going through a difficult time, marked by the emergence of the DeepSeek R1 AI model in China. This technological advance, referred to as a black swan event, prompts the Trump administration to consider tightening restrictions on Nvidia component exports to China.
Ryan Lee, chief analyst at Bitget Research, had already predicted a possible bitcoin correction towards $95,000, emphasizing the importance of macroeconomic indicators and Federal Reserve policy in the coming weeks.
In summary, in this climate of uncertainty, the increased dominance of bitcoin paradoxically reveals both its relative resilience and the persistent fragility of the crypto market in the face of geopolitical and macroeconomic turbulence.
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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.