Bitcoin dominance is a gauge of the coin’s relative share of market capitalization in comparison to the broader crypto market. It hit a three-year high, at around 59%, in late-November, before falling sharply to 53.9% by Friday, data from Coinmarketcap showed.
Total (EPA:TTEF) crypto market capitalization hit a record high of $3.7 trillion on Thursday, driven chiefly by Bitcoin’s rally. The latest point of support came from Trump nominating pro-crypto lawyer Paul Atkins as the next Chairman of the Securities and Exchange Commission.
Citi analysts noted the prospect of regulatory clarity, adding that recent macro factors also presented a positive picture for crypto.
But they warned that regulatory clarity could open more use cases for crypto and broaden the asset class’s appeal, fostering strength in coins and tokens beyond Bitcoin.
“Over the long-term, we think a network’s utility or value will be related to usage, as well as macro correlations and production costs. A new regulatory regime may unlock further or broader use cases for blockchain assets,” Citi analysts wrote.
In such a scenario, Bitcoin- which is already treated as a commodity- “has less to benefit than others,” Citi warned. The brokerage also joined a slew of its peers in warning that Bitcoin’s use as a reserve asset was unlikely to happen.
Bitcoin fell sharply from its peaks above $100,000 on Thursday, steadying around $97,000 in volatile trade on Friday.
Source: Cryptocurrency - investing.com
