According to U.Today, Bitcoin’s dominance in the cryptocurrency market has risen to nearly 60%, marking a significant increase of nearly 10% over the past month. This is the highest market share for Bitcoin since April 2021, a period in which its dominance had dramatically dropped by 16.64% in just one month. Bitcoin’s current increase in market share indicates a lack of an altcoin season, with the flagship cryptocurrency maintaining its stronghold in the market.
By September 2022, Bitcoin’s dominance had briefly fallen below 40%, reaching a local low of 38.84% in a challenging bear market. However, Bitcoin has since regained its position and, according to Singapore-based digital asset trading firm QCP, its dominance is expected to continue rising as it approaches a new all-time high. This rally suggests that Bitcoin is unlikely to lose ground to altcoins in the near future.
Bitcoin recently suffered a brief crash following a Wall Street Journal report about an ongoing criminal investigation into stablecoin issuer Tether by the U.S. government. Despite this, Bitcoin quickly recovered its losses after Tether CEO Paolo Ardoino downplayed the investigation as “old noise.” At the time of the report, Bitcoin is trading at $67,130, according to data from CoinGecko.
Analyst James Van Straten noted that this market cycle is different, with minimal capital rotation from Bitcoin to Ethereum. He describes this trend as a “flight to quality,” indicating that investors are favoring Bitcoin over other cryptocurrencies. This is further demonstrated by the fact that Ethereum, the largest altcoin, recently hit a multi-year low against Bitcoin.
