Bitcoin dominance of crypto market plumbs 2-month trough

Bitcoin fell in spot trading today, about to abandon the $8,000 barrier due to mounting pressure, especially after the decline of Bitcoin's dominance over the crypto market to 2-month low.

At Bitstamp, Bitcoin fell by 1.1% or $91 to $8,262, from the opening of $8,353, with a session-high of $8,420.  

Bitcoin gained 1.0% yesterday, in its attempts to hold above $8,000 in the face of the mounting pressure.

The total market cap of cryptocurrencies fell by more than $1 billion today, to around $225 billion, as Bitcoin and most other major cryptos fell.

The lukewarm reception of the long-awaited Bakkt’s launch is also a primary factor behind these pressures on Bitcoin, which renewed concerns about the regulatory restrictions in the US.

Otherwise, the US Securities and Exchange Commission (SEC) announced its rejection of listing the Bitcoin ETFs offered by Bitwise.

Crypto experts interpreted this decision as a potential first step for rejecting other funds, which diminished the high hopes for the approval of this type of funds in order to increase interest in investing in digital assets.

Bitcoin's dominance over the crypto market trading fell to 66%, its lowest since early August, as focus shifted to other major cryptos such as Ethereum and Ripple.

The G7 countries issued a report that touched the risks associated with cryptocurrencies, the report said "no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed".

The report made matters worse for the Facebook digital project "Libra", which is scheduled to launch in the first half of 2020.

Former CFTC chairman Christopher Giancarlo, said that that regulators will increase their interventions in the crypto market due to Libra and the prospects for cryptocurrencies for central banks.

Giancarlo added that if regulators are more clear, the market will be attractive to large institutional investors, but if they are just looking to strangle projects and create obstacles, growth might take longer than expected.