Nikolaos Panigirtzoglou, global market strategist at US banking giant JPMorgan Chase, believes that for those who want to know when the current bear market phase will end, Bitcoin’s dominance is a trend indicator worth paying attention to.

Bitcoin World-JP Morgan Chase: Bitcoin’s market capitalization determines the bulls and bears, and the market will not usher in the next crypto winter

In the “Global Communication” program aired on CNBC on Thursday, June 29, Panigirtzoglou said that it would be “healthy” for Bitcoin’s market share to rise above 50%. He believes that this is an indicator that needs attention on the issue of whether these bear market phases are over.

The high-profile JPMorgan Chase analyst pointed out that the dominance of Bitcoin “suddenly” dropped from 61% to only 40% in April, which lasted only more than a month. The fast-growing dominance of altcoins usually indicates excessive bubbles in the cryptocurrency market. The massive rebound of Ethereum, Dogecoin and other cryptocurrencies bears the shadow of January 2018, when the market had already peaked.

After the entire market collapsed, Bitcoin’s dominance climbed back to 48% on May 23, but it failed to break the 50% mark.

Panigirtzoglou pointed out that the amount of funds flowing into Bitcoin has improved recently, but still has not seen the same amount of funds inflow as in the fourth quarter of 2020, so the overall outflow of funds is still bearish.

One of the highlights of the recent Bitcoin trend is that the shares of Grayscale Bitcoin Trust will be unlocked next month. This event may put additional downward pressure on the cryptocurrency market.

Even with this pressure, Panigirtzoglou still predicts that the market will not usher in another cold winter for cryptocurrencies, because there will always be a price that will regain the interest of institutional investors.

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