Bitcoin Dominance Surges to 54% in 2023
Recent data reveals a surge in bitcoin's dominance in the cryptocurrency market, reaching levels not seen since February 2021. Currently, bitcoin (BTC) constitutes approximately 54% of the total cryptocurrency market value, with ethereum (ETH) trailing at just above 17%.
Bitcoin's dominance has seen a significant increase this year, rising from 40.2% in October 2022 to the current 54% by October 2023. Insights compiled by Tradingview on October 24, 2023, highlight fluctuations in bitcoin's dominance, ranging from 53.44% to 54.11%.
Tradingview calculates bitcoin's dominance by comparing its market capitalization against the aggregate value of the top 125 cryptocurrencies. Notably, BTC's rise to this level is the first in over 980 days, spanning more than two years and eight months.
Bitcoin's Historical Dominance
Looking back to January 2017 and earlier, bitcoin dominated 80-90% of the entire crypto market. However, ethereum (ETH), currently the second-largest cryptocurrency by market capitalization, now holds a 17.6% share of the crypto economy.
ETH's dominance stood at 21.24% in October 2021 but experienced a decline, reaching a low of 15% by May 2022. In October of the previous year, ETH's dominance was 19.3%, but it has been on a downward trajectory since April 2023.
In contrast, BTC's dominance has been steadily climbing since April 2023, rising from 47.89% to its current position. While ether comes closest to bitcoin in terms of market share, other cryptocurrencies in the top ten pale in comparison, as they collectively constitute only 71% of the market.
Market Share Breakdown
For perspective, the third-largest cryptocurrency, tether (USDT), comprises a mere 6.667% of the expansive $1.26 trillion market. Binance Coin (BNB) and Ripple (XRP) represent 2.767% and 2.305%, respectively.
The top eight digital currencies, excluding BTC and ETH, encompass 17.55% of the market. Currently, the top ten cryptocurrencies collectively account for an overwhelming 88% of the total market.
The Future of Bitcoin's Dominance
In the ever-changing world of cryptocurrency, fortunes can shift rapidly. It is entirely possible that these rankings and market shares could undergo a seismic transformation by the time October 2024 arrives.
What are your thoughts on bitcoin's rising dominance in the market? Share your opinions and insights in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You can also contribute directly to your paycheck via payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. However, you can't purchase physical bullion. This means you won’t be able to trade stocks and bonds.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. You don't have tax to pay when you buy or sell gold. It's not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. In the case of gold, this usually means selling it. However, there is no guarantee that the lender would do this. They might just hold onto it. They might decide that they want to resell it. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. You should leave it alone if you don't intend to lend against it.
Is physical gold allowed in an IRA.
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Another benefit to investing in gold? It has virtually zero counterparty exposure. You still have your shares even if your stock portfolio falls. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, the liquidity that gold provides is unmatched. This means you can easily sell your gold any time, unlike other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
3 Ways to Invest Gold for Retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also consider investing in gold outside your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
If you do invest in gold, follow these three simple rules:
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, invest in cash. This will help protect you against inflation and keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. There are no storage fees for physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This is how you spread your wealth. You can invest in different assets. This can reduce market volatility and help you be more flexible.
By: Jamie Redman
Title: Bitcoin's Dominance Reaches New Heights with Over 50% Market Share
Sourced From: news.bitcoin.com/with-over-50-market-share-bitcoins-dominance-echoes-its-2021-peaks/
Published Date: Tue, 24 Oct 2023 13:30:41 +0000