Bitcoin dominance drops to 50.2% for the first time since July 2018

With traders & investors expecting 'alt season', what does this mean for Bitcoin?

China regards Bitcoin as an ‘investment alternative’, Venmo brings crypto to 70 million users, major alt season ahead?

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Quick Take:

  • Paypal’s Venmo brings crypto to its 70 million users

  • Deputy governor of the PBoC calls Bitcoin an ‘alternative investment’

  • Former top banking regulator Brian Brooks to become Binance.US CEO

  • Cardano moves ahead of Polkadot with $29 billion staked

  • PancakeSwap transactions tops Ethereum

  • Bitcoin dominance drops, alt season next?

Bitcoin dominance drops to 50.2% for the first time since July 2018

As of Thursday, data via CoinMarketCap reveals that Bitcoin’s market dominance has dropped to 50.2%, breaking through support held for over three years.

What does this mean for altcoins?

Historically, each time Bitcoin has broken below 50% dominance, altcoins have seen a surge in price dubbed “alt season” which is often led by Ether. Historically, every “alt season” has followed a sharp drop for the total crypto market capitalization in which Bitcoin slowly regains its dominance.

What does this mean for Bitcoin?

Despite the drop in dominance, the long term macro outlook for Bitcoin still looks bullish as more institutional investors, major payment giants and fortune 500 companies continue to adopt the benchmark cryptocurrency.

This week saw Venmo offer Bitcoin and crypto to its $700 million users, WeWork announced holding Bitcoin on its balance sheet, legendary investor Bill Miller called Bitcoin digital gold, and the Grayscale Bitcoin Trust continued to gain ground on the world's largest gold ETF.

Paypal’s Venmo launch of crypto buying & selling for its 70 million users

PayPal's Venmo yesterday announced the launch of crypto on Venmo, a new way for more than 70 million customers to buy, hold and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash directly within the app for as little as $1.

More than 30% of Venmo customers have already started purchasing cryptocurrency or equities, according to the payments company. And 20% of those customers started doing so during the pandemic.

“Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have," said Darrell Esch, SVP and GM, Venmo.

China’s Central Bank regards Bitcoin as an ‘investment alternative’

Li Bo, the deputy governor of the People’s Bank of China recently said during a panel hosted by CNBC at the Boao Forum for Asia that Bitcoin is not a currency but rather an investment tool or an alternative investment. Li Bo said:

We regard Bitcoin and stablecoins as crypto assets. Crypto assets, as Agustin just discussed, these are investment alternatives, they are not currency per se. The main role we see for crypto assets, going forward, their main role is investment alternative.

He then added:

As for investment alternatives, many countries, including China are still looking into it and thinking about what kind of regulatory requirements – maybe minimal but we need to have some kind of regulatory requirements – to prevent the speculative nature of such assets [from creating] any serious financial stability risks. And before we have a clear idea what kind of regulation we need, I think we will keep our current regulation.”

Former top banking regulator Brian Brooks to become CEO of Binance.US

Brian Brooks, an acting head of the Office of the Comptroller of the Currency under the Trump administration, will become the new chief executive of Binance.US, the U.S. affiliate of overseas crypto-exchange giant Binance.

During his time at the OCC, Mr. Brooks was dubbed the “CryptoComptroller” on social media for his friendly attitude toward digital currencies. On CNBC’s Squawk Box last month, Brooks said the following when asked if U.S. legislation could stop crypto:

“Remember, every mayor and every taxi cab commissioner tried to stop Uber. But 50 million Americans wanted it and now we have it. It's going to be the same thing with crypto.”

More highlights:

Early Tesla investor, Baillie Gifford invests $100M in

PancakeSwap transactions tops Ethereum but BSC feels the strain

RIT Capital Partners acquires stake in crypto exchange Kraken

3 ETH ETFs begin trading on the Toronto Stock Exchange

Square & ARK publish whitepaper on Bitcoin and renewable energy

Turkish crypto exchange Thodex accused of fraud

Cardano moves ahead of Polkadot with $29 billion staked

eToro lists Chainlink and Uniswap for trading

That's it, you’re up-to-date

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