In a recent interview with The David Lin Report, Benjamin Cowen, the founder of Into The Cryptoverse, expressed doubt about Bitcoin regaining the dominance levels it saw in December 2020. Cowen believes that while Bitcoin’s dominance might rise to about 60%, it is unlikely to hit the 70% mark it reached at the end of 2020.
As of August 17, Bitcoin’s dominance is at 57.37%, up 4.25% since mid-July and 11.20% higher since the start of the year, according to TradingView. Cowen explained that during times when altcoins become popular, Bitcoin’s dominance tends to drop.Â
Bitcoin’s Dominance Chart | Image Source: TradingView
Although Bitcoin’s dominance may increase, Cowen doubts it will return to the peak levels of late 2020. He expects Bitcoin could reach around 60% dominance by either September or December.
Another viewpoint comes from the crypto trader Kaleo, who suggested that Bitcoin dominance may have already reached its highest point for this cycle. Kaleo, with over 643,700 followers on X, mentioned on August 9 that Bitcoin’s dominance might have peaked, and a drop below 50% could signal a strong period for altcoins.
In December 2020, Bitcoin dominance hit a high of 70.23%before its price surged by about 220% to $61,283 by March 2021. Cowen noted that today’s market conditions are different from past cycles due to the larger market size of stablecoins compared to 2019.
Cowen also suggested looking at Bitcoin’s dominance together with the dominance of Tether (USDT), a major stablecoin. He explained that the combined dominance of Bitcoin and USDT is 63.07%, similar to levels seen in mid-2019 before significant changes in Federal Reserve policies.
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