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The Bitcoin index of domination exceeds 61% for the first time since March

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For the first time since March of this year Bitcoin dominance index has exceeded 61%, further consolidating the position of bitcoin as the leading digital currency in the global cryptocurrency market.

From January to September, the dominance index of bitcoin rose from about 90% to 30%. But, in recent months, the bitcoin dominance index has gradually risen and earlier this week, the bitcoin dominance index has finally surpassed the 60% mark.

Reassignment of alternative cryptocurrencies funds (altcoins) to Bitcoin

The bitcoin dominance index has surged since September, as a growing number of investors and traders began to reallocate their holdings in bitcoin altcoins. In addition, announcements of two of the largest stock exchanges in the world CME and CBOE to launch bitcoin futures exchanges by the end of 2017 have increased the bitcoin demand of the financial industry traditional.

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At the time of reporting, LedgerX remains the only swap execution facility (SEF) and derivatives clearing organization (COD) approved by the Commodity Futures Trading Commission ( CFTC) to handle bitcoins and other cryptocurrencies. During the first week of its launch, a period during which the LedgerX team expected to release minimum volumes to test its systems, LedgerX settled more than $ 1 million in derivatives. and options on bitcoin.

Based on the success of LedgerX and the growing demand for bitcoins in the traditional financial industry, CME and CBOE began to focus on the development, deployment and approval of Exchange of bitcoin options on a large scale. ]

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In August, Ed Tilly, CEO of CBOE Holdings, stated:

"CBOE is not only a home for options, derivatives and VIX but also for ETF innovations and foreign currencies.This makes us the natural choice for the development and trading of bitcoins futures We are very much looking forward to meeting the growing interest in crypto-currencies through the creation of bitcoin futures traded on a regulated derivatives exchange, with many benefits expected, including transparency, price discovery, deep liquidity and centralized clearing. "19459008]

It is important to recognize the entry of institutional and retail investors into the bitcoin market as this has allowed bitcoin to regain dominance in the cryptocurrency and retail market. evolve into a robust, widely recognized and accepted market. store of value.

Can the Bitcoin dominance index still reach 90%?

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Bitcoin has been taxed as a safe haven asset and safe haven since the beginning of 2016. It is unlikely that bitcoin will again gain 90% dominance index in the months to come, given the exponential growth rate of Ethereum and Bitcoin Cash, two crypto-currencies with different philosophies and goals unlike Bitcoin.

But Bitcoin remains one of the very few public blockchains and value stores in the global cryptocurrency market used by active users, traders, investors and businesses. If demand for bitcoin continues to increase in the medium term, the bitcoin dominance index will probably reach 70%.

Image from Shutterstock to photo

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