ETH Dominance Hits 1 Month High

According to TradingView data, Ethereum (ETH)’s rally, which saw more than $ 2,000 after its Shanghai, lowered Bitcoin dominance from a record level of nearly two years. According to the same data, Bitcoin’s market dominance climbed as high as 49.06% on Wednesday, while it fell to 48.12% as the Ethereum price increased. The metric last hit 49% in July 2021, about 21 months ago. ETH dominance hit a one-month high on Thursday, climbing 19.87% after the upgrade.

Bitcoin dominance rate is called the share of BTC market cap in the total market cap of the cryptocurrency market. This metric is an important criterion for assessing the relative strength of BTC relative to the larger crypto market or identifying periods when altcoins have performed better. ETH dominance also indicates the relative value of the second largest cryptocurrency in the crypto market.

This shift comes after the long-awaited upgrade, also known as Shapella, was completed smoothly on Wednesday, while ETH’s increasing performance has reduced BTC’s market share. Shapella has pulled over 17.4 million stakes worth approximately $35 billion from Ethereum’s proof-of-stake blockchain for the first time since its launch in December 2020.

As it is known, at the beginning of May, the US Federal Reserve (Fed) will make one of the most important interest rate decisions. Experts state that despite all that has happened, the institution may increase interest rates by 25 basis points. Others say that the Fed may pause the rate hikes for a while after that. Therefore, the general expectation is that the Fed will increase interest rates by 25 basis points and then stop these increases, or it will enter a period of stagnation by not making any increases in May. Stopping the upward trend of interest rates may cause gradual decreases in the dollar index and the rise of stocks and cryptocurrencies. It is stated that the Fed may also cut interest rates, especially from the end of 2023 or the beginning of 2024. It is also a matter of curiosity whether the targeted 2% inflation level can be reached here… The inflation data for March, which was announced this week, was announced as 5%. All these developments will show the short/medium term direction of cryptocurrencies, especially Bitcoin.

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