Bitcoin’s dominance surged above 50% for the first time since April 2021. This means that Bitcoin’s (BTC) market capitalization now accounts for over 50% of the total cryptocurrency market.
It’s a development that many traders and investors closely monitor, as it reflects Bitcoin’s strength relative to other cryptos in the market.
To put it simply, when Bitcoin’s dominance is high, it indicates that BTC is outperforming alternative cryptocurrencies to Bitcoin (altcoins). When it’s low, it suggests that altcoins are gaining ground.
Now, there are a few reasons why this surge in dominance is happening. One factor is the recent buzz around Bitcoin exchange-traded funds (ETFs).
Firms like BlackRock and Grayscale, which are major players in the investment world, have shown interest in launching Bitcoin ETFs.
These financial products could make it easier for institutional and retail investors to get into Bitcoin, and that’s creating a lot of excitement.
Recently, Bitcoin reached over $35,000 before retracing back to trading around $34,173 at the time of writing.