Bitcoin Dominance Index Surpasses 61%

Bitcoin Dominance Index Surpasses 61% for First Time since March

For the first time since March this year, the bitcoin dominance index has surpassed 61 percent.
This further development has helped in solidified its position as it continues to lead the way as
the largest digital currency in the world.
The dominance index of bitcoin had drastically declined from January to September, falling by
about 60% (from 90%-30%). However, over the past couple of weeks, the dominance index of
bitcoin had been steadily increasing, with the figure now surpassing the 60% mark during the
week.

The dominance index of bitcoin has been on a surge since September as the number of traders
and investors pushing their investments in altcoins to bitcoin. The other catalysts that further
led to the growth are the announcement of bitcoin’s integration into CME and CBOE looking to
launch bitcoin futures exchanges by the end of 2017. This has seen the demand for bitcoin
increased by seven-fold the amount it was at the beginning of the year.
As at the time of filing this report, LedgerX remains as the only Commodity Futures Trading
Commission (CFTC)-regulated Swap Execution Facility (SEF) and Derivatives Clearing
Organization (DCO) approved to deal with bitcoin and other cryptocurrencies. In its first week
of operation, the LedgerX team had expected to clear minimal volumes to test its systems and
they were able to clear over $1 million in bitcoin derivatives and options trades.
The success of LedgerX and the increasing demand for bitcoin had led other exchange platforms
such as CME and CBOE to declare an interest in the market, with both platforms now focusing
on the development, deployment, and approval of large-scale bitcoin options exchanges.
The CEO of CBOE, Ed Tilly stated back in August that, “CBOE is not only a home to options,
derivatives, and the VIX but also ETF innovations and foreign exchange. This makes us the
natural choice for the development and trading of bitcoin futures.

We very much look forward
to responding to the growing interest in cryptocurrencies through the creation of bitcoin futures traded on a regulated derivatives exchange, with the many expected benefits that this
brings, including transparency, price discovery, deep liquidity and centralized clearing.”
The importance of the entrance of traditional and institutional investors into the crypto world
over the past few weeks has been instrumental to the growth of bitcoin and its dominance in
the market as more companies are beginning to accept it as a means of payment.
Can Bitcoin Dominance Index Bounce Back to 90 Percent Again?
The question is now if the currency can regain its 90% dominance index it held at the beginning
of the year. It is very unlikely that it will reach that level in the coming months due to the
exponential growth of other cryptocurrencies like Ethereum and Bitcoin Cash.
Bitcoin however still remains the leading blockchain that is being used by active users, traders
and investors all over the globe. If the demand for the digital currency continues to grow at its
current rate, then it is very likely that its dominance index will clock 70% very soon.

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Published by

fintechcryptocurrencymining

Financial Technological Networker , developing Crypto Currency Mining enthusiast , here in an African Continent !! A participant in various FinTech Platforms Local and Globally !!

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