According to a recent analysis by Bloomberg, Bitcoin is steadily reclaiming its market dominance, now accounting for 48.5% of the $1.1 trillion cryptocurrency market. This marks a notable increase from its 38% share at the beginning of the year. The shift is indicative of cautious investor sentiment, as many are turning to Bitcoin as a more secure asset amid market uncertainties.
The report highlighted the insights of Caroline Mauron, co-founder of digital-asset derivatives liquidity provider OrBit Markets. She believes that Bitcoin’s “longstanding claim” as a “safe haven” or “diversification benefit” in traditional markets is being “reaffirmed.”
Ether, the second-largest cryptocurrency, has seen a 6% decline this quarter, contrasting with Bitcoin’s 2% gain. The tepid response to Ether futures exchange-traded funds (ETFs) in the U.S. suggests a lack of institutional enthusiasm for the asset. The Bloomberg article emphasized the “fizzling performance” of digital assets, noting that Ether’s year-to-date performance has dropped from a peak of 77% to 32%.
The report also drew attention to Vetle Lunde’s observation that the “gravitational pull” in the cryptocurrency market is currently with Bitcoin. Lunde noted that the “slow progress” of Ether futures ETFs suggests a lack of “institutional demand” for Ether. Some investors are also relying on “seasonal and technical patterns,” as Bitcoin has, on average, risen 24% in October over the past decade, the report added.
Amidst this backdrop, several dormant Bitcoin addresses have been springing to life. A recent tweet from blockchain security firm PeckShield disclosed that a Bitcoin address, inactive for six years, moved approximately 2,995 BTC, or around $82.3 million, to two new addresses. This is not an isolated incident; several dormant addresses have become active in recent months, transferring significant amounts of Bitcoin.
For instance, in August, an address dormant for nearly 13 years transferred 1,005 BTC, roughly valued at $29.7 million. Another address, inactive for nearly six years, moved 2,100 BTC, valued at $56.3 million, in September. These awakenings often fuel market speculation, as they could signify original holders cashing out, engaging in estate planning, or enhancing security measures.
At the time of writing, Bitcoin was priced at $27,701.46, and Ether stood at $1,592.96.
