A decline has been observed in Bitcoin futures trading after Bitcoin nearly tripled since the beginning of the year. Altcoin market share increased from 32% to 41%.
Bitcoin (BTC) has been a leader in the crypto futures market for a long time, but recently it has slowly started to lose its dominance in this space. Despite the rise of BTC in the crypto market, the proportion of BTC-related futures contracts in the total market has fallen to its lowest level, according to an analysis by Coinalyze.
BTC prices have increased by 60% since October and more than 150% since the beginning of the year, reaching $45,000. This increase is due to lower US Treasury yields and the possibility that the SEC may soon approve one or more spot Bitcoin exchange-traded funds (ETFs).
Bitcoin Futures Dominance Is Declining
However, BTC’s dominance in the futures market continues to decline. At the end of October, Bitcoin’s share of open futures positions was around 50 percent, but this share has now fallen to 38 percent. This decline is due to the increasing interest of investors in alternative cryptocurrencies (altcoins). The share of altcoins in the market increased from 32% to 41%.
While the market share of some major altcoins such as Ethereum (ETH) and Bitcoin remains relatively stable, investor interest in new, more profitable cryptocurrencies is increasing.
