Ethereum Merge Causes Bitcoin Dominance Growth, Here’s Why
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Bitcoin dominance increases after Ethereum Merge and continues this trend
Bitcoin dominance after yesterday’s successful transfer of Ethereum to the stake consensus showed an increase of more than 2 percent. The index, which was at a four-year low at the end of last week, began to rise closer to the date of the important event of the most important altcoin in the crypto market.
Currently reaching 38.84%, Bitcoin became temporarily uninteresting for investors pouring money into Ethereum. Nevertheless, in the five days leading up to the event, analysts on the chain saw strong gains in ETH while the price of BTC rose.
As it later turned out, more savvy investors moved money from Ethereum to Bitcoin in advance, especially given the latter’s strongest internal drop in two years on the back of a very negative CPI report.
Now, Bitcoin’s growing dominance is helping it stay in the green despite a more than 1% drop in the S&P 500, with which BTC is closely correlated.
The current state of the crypto market
Unfortunately, despite the fact that the crypto market has temporarily detached itself from the movement of traditional finance, it is still necessary to follow the indices of the US stock market.
So the S&P 500 crossed the important $3,950 level to $3,900 and is currently trading at those levels. If the buyer is unable to hold the $3,900 level within two days, we should expect a further decline, with the first target being the $3,700-$3,640 block. For Bitcoin, which so far is holding on thanks to growing dominance, this means a possible move below the $19,500-$19,000 level.