In the latest episode of The Market Report, Cointelegraph analyst and writer Marcel Pechman delves into the factors contributing to Bitcoin’s recent achievement of 50% dominance in the crypto market for the first time in two years. He attributes this milestone to Blackrock’s filing for a spot exchange-traded fund (ETF) and the United States Securities and Exchange Commission’s crackdown on altcoins.
Pechman highlights the unexpected growth of Bitcoin as the second-largest non-fungible token (NFT) blockchain, a position that was not initially anticipated. Analyzing data from CryptoSlam, he reveals that Ether (ETH) had a 30-day adjusted trading volume of $380 million, while Bitcoin had $104 million and Solana (SOL) had $40 million, excluding wash trades.
He further discusses Michael Saylor’s call for Bitcoin to achieve 80% market dominance, which would depend on decentralized finance (DeFi) migrating to the Bitcoin network. However, Pechman notes that this goal currently seems challenging due to the lack of infrastructure for smart contracts on Bitcoin, even with the existence of a second layer.
Pechman then addresses a point raised in Glassnode’s “The Week On-Chain” report, which suggests that Bitcoin’s sideways price action could last for 18 months based on previous halving cycles. He argues that considering such a prolonged period as mere “sideways boredom” does not accurately reflect the reality for traders. Significant price fluctuations, even within a seemingly stagnant period, can have significant consequences for traders.
In the final segment, Pechman discusses Deutsche Bank’s application for a digital asset custody license. He clarifies that this type of custody service involves holding client assets rather than the bank’s own investments or integrating cryptocurrency services. While the acceptance of Bitcoin and Ether deposits as collateral for international shipping or loans is not yet imminent, Pechman believes it may be a while before we see such developments.
Overall, the episode covers Bitcoin’s increasing market dominance, the challenges faced by decentralized finance on the Bitcoin network, the potential impact of prolonged sideways price action, and Deutsche Bank’s involvement in digital asset custody.
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