- Bitcoin’s buying momentum wears off as its share of crypto market drops to 47%
- Bitcoin’s price hovers around $58,000 for a third consecutive day on Monday
Why did Bitcoin trade flat?
The price of the world’s largest digital asset has stagnated near the $58,000 level over the weekend. In April, bitcoin fell flat again as it closed with a gain. The token’s price slipped 2.4%, marking the first month in negative territory since September last year.
On Apr 30, the crypto token made a significant 11th hour-effort to clear the month but the 7% intraday boost was insufficient for a green monthly close. However, bitcoin was able to break out of the lows around $47,000 near the end of April and closed the month at $56,800, or $2,100 from the opening price on Apr 1.
Over the weekend, bitcoin logged a daily increase of 1.8%. On Sunday, however, crypto investors couldn’t support the upside momentum and price pulled back near the opening levels for the month of May. On Monday, the biggest token is trading around $57,900 a coin as price remains consolidated for a third-straight session with gains capped by the $58,000 mark. On the other hand, the downward move has been limited to $56,500.
Bitcoin in Q1 2021
Lately, bitcoin still needs to recover the losses after its slide from the all-time high of $64,800. This caused the market share distribution to shift. Bitcoin remains the largest cryptocurrency among a market with roughly 10,000 other coins. However, it has gradually been losing its dominance over the space.
Bitcoin kickstarted the year owning about 70% of the total crypto market value, which on Jan 1 was $770bn. Four months later, the total market capitalization of the digital asset market has grown to nearly $2.3tn. Bitcoin’s market share, however, has shrank to 47% as other cryptocurrencies have substantially increased their value.
Crypto enthusiasts point to the growing demand for other coins as a sign investors are comfortable diversifying their crypto portfolio by owning alternative digital assets. The second-largest cryptocurrency, Ether just broke the $3,000 milestone and now has a market valuation above $355bn, or 15% of the total space. The rest of the cryptocurrencies make up the remaining 38% of the cryptocurrency market.