[Bitcoin Now] Coin Market Engulfed in Fear... Altcoin Share ↓

Coin Investment Sentiment Remains at 'Fear' Level
Bitcoin Market Cap Share Increases Amid Low Price Volatility

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Sentiment for virtual asset investment has frozen solid. As investment sentiment fails to revive, the market capitalization share of Bitcoin, which has relatively low price volatility, has increased, while the share of altcoins appears to be decreasing.

According to virtual asset data provider Alternative on the 1st, the Fear & Greed Index, which measures investment sentiment, was recorded at 26 points (fear) on that day. The previous day it was 25 points, falling to an extreme fear level, but it rose by 1 point on this day.

Coin investment sentiment still remains at a fear level. On November 6 last year, it rose to 40 points (fear), raising expectations for an improvement in investment sentiment, but from the next day, sentiment worsened again. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to near 100 points, indicating optimism.

As investment sentiment fails to recover, the market capitalization share of Bitcoin, which has relatively less volatility than altcoins, is gradually increasing in the virtual asset market. According to data from the global cryptocurrency market tracking site CoinMarketCap, Bitcoin Dominance, the market capitalization share of Bitcoin, was recorded at 40.05% on that day. Compared to 37.98% in early December last year, this is an increase of 2.07 percentage points. It also increased by 1.43 percentage points compared to early November last year. Although this is lower than the over 45% recorded in June last year, it shows an upward trend.

The share of coins ranked outside the top 10 by market capitalization decreased from 16.73% in early December last year to 15.42% on that day. Until May last year, it exceeded 20%, but it has continued to decline as the coin market remains sluggish. The market capitalization shares of Ripple and Dogecoin, which are ranked within the top 10, also decreased from 2.24% to 2.14% and from 1.67% to 1.17%, respectively.

This phenomenon occurs because Bitcoin's price has been hovering around the $16,000 level despite tightening concerns, while altcoins show greater volatility. In the new year, the U.S. Federal Reserve's tightening stance is expected to continue, and the market is burdened with negative factors such as the aftermath of the global virtual asset exchange FTX incident. In this situation, altcoin prices are showing larger declines than Bitcoin. Looking at the price fluctuations over the past week, Bitcoin fell by 1.82%, while Ethereum, the leading altcoin, dropped by 2.31%, and Ripple fell by 3.38%. Dogecoin also dropped 9.81%, and Cardano and Polygon fell by 5.55% and 5.86%, respectively.