Bitcoin (BTC) is asserting its dominance in the crypto market, fueled by anticipation of its upcoming halving and growing risk aversion among investors, despite facing a price correction.
During Asian trading hours on Thursday, the largest cryptocurrency by market value dipped below $61,400, reflecting a broader sell-off in risky assets amidst challenging macroeconomic conditions.
While Bitcoin grapples with its challenges, layer-1 protocols and altcoins are faring even worse. Top layer-1 tokens like Solana (SOL) have seen declines of over 20% in the past week. Avalanche (AVAX) is down by 26%, Cardano (ADA) by 23%, and Filecoin (FIL) by 30%.
The downturn extends to Artificial Intelligence tokens, once market favorites, with significant double-digit losses recorded over the past week. Render’s RNDR is down by 13%, while Fetch.AI’s FET token has dropped by 24%.
As a result, Bitcoin dominance is on the rise. This metric helps traders gauge market sentiment and Bitcoin’s influence on altcoin trends. Currently, Bitcoin dominance stands at 55.19%, marking an increase of approximately 1.35% in the past week or 2.5% in the last month.
Simultaneously, interest in the halving event is skyrocketing on Google search, surpassing even Ethereum, Solana, or Dogecoin. This surge in search interest suggests heightened anticipation and awareness surrounding the upcoming halving event compared to previous occurrences.
