Bitcoin Dominance Nears 60%, Signaling Rising Risk Appetite in Crypto Market

Bitcoin, the largest cryptocurrency by market value, has lifted its share of the crypto market to nearly 60%.

CoinDesk reported on October 2 that Bitcoin dominance, or Bitcoin’s share of the total cryptocurrency market capitalization, was approaching 60%. In contrast, the market share of Tether, the world’s largest stablecoin, fell to about 6.3%.

CoinDesk said the drop in Tether’s share can be interpreted as a sign that market participants are moving funds out of cash-like stablecoins and into cryptocurrencies such as Bitcoin. That points to a broader increase in investors’ willingness to take on risk.

There is also a view that the market will move in response to the U.S. September nonfarm payrolls report due later in the day. Markets expect 90,000 new jobs, slowing from 162,000 in the previous month, while the unemployment rate is projected to hold at 4.1%.

Oliver Caddick, head of marketing at Tesseract Group, said he is watching the 10-year real yield at about 3%. If it remains consistently above that level, Bitcoin will be more likely to retest $80,000 to $82,000 than move toward $90,000.