Bitcoin dominance, a metric indicating Bitcoin’s market share relative to other cryptocurrencies, has surged to a two-month high amidst a cooling-off period in the crypto markets following substantial gains. This rise reflects a growing preference for Bitcoin over alternative cryptocurrencies (altcoins).
The surge in Bitcoin dominance, reaching almost 50%, suggests increased investor confidence in Bitcoin amid market uncertainties. This phenomenon underscores Bitcoin’s status as a dominant force in the crypto landscape, influencing market sentiments and investment strategies.
Bitcoin wins over the crypto market sentiment
As of this writing, the current value of Bitcoin (BTC) is $61,831.45; this represents a 1.2% increase from yesterday and a 0.7% increase from an hour ago. As of today, Bitcoin has gained 21.2% in value when compared to its value seven days ago.
The current valuation of cryptocurrencies on the global market is $2.41 trillion, representing a change of -0.16% over the last twenty-four hours and 114.13% over the past year.
At present, Bitcoin holds a market cap of $1.22 trillion, signifying a dominance of 50.32%. Stablecoins, meanwhile, have a market capitalization of $143 billion, or 5.92 percent, of the total crypto market capitalization. At this time, BTC’s Fear and Greed Index sits at 80, signifying extreme greed.
A lot can be written about the current business week, as the entire landscape of the crypto markets has shifted. Just last weekend, BTC stagnated between $51,000 and $52,000, unable to break over the latter.
However, the bulls initiated a tremendous surge on Monday, resulting in a gain of several thousand dollars in hours. By Tuesday, the crypto had reached nearly $60,000. That threshold was ultimately crossed on Wednesday, and the rally propelled BTC to $64,000.
This was its highest price in over two years. However, it was met with a harsh rejection, sending Bitcoin down by more than $5,000 in minutes and leaving millions in liquidation.
Its market capitalization, which ranks it among the top ten largest financial assets, is still significantly higher than $1.2 trillion. Its dominance over altcoins has increased by 5% since February 27 and is presently at a two-month high of 50.5% on CoinGecko.
Bitcoin enters the top 10 assets by market capitalization
Bitcoin’s gloomy days of 2022 and early 2023 appear to be in the past. The asset had fallen to less than $20,000 as a result of industry-wide collapses and multiple bankruptcies, as well as macroeconomic events such as wars, rising interest rates, and inflation.
However, the situation began to change in mid-2023 when BlackRock filed for a spot Bitcoin ETF. Many financial institutions followed suit, and the narrative surrounding such products shifted to “It’s a matter of when not if.” That arrived in early 2024, but BTC had already risen above $40,000 due to the hoopla surrounding those ETFs.
After a brief but sharp fall, Bitcoin’s value began to rise again, particularly in late January and February. The asset has risen from $44,000 on February 7 to more than $61,000 earlier today, indicating a particularly beneficial period.
This indicates that Bitcoin is not only the largest cryptocurrency by market capitalization but also has made a prominent appearance on this list among all forms of financial assets.
According to CompaniesMarketCap, BTC is currently the tenth largest asset by market capitalization, ahead of behemoths such as Berkshire Hathaway and the world’s largest banking corporation, JPMorgan Chase.
What’s particularly intriguing about those two behemoths is that their CEOs, Warren Buffett, and Jamie Dimon, have been criticizing BTC for years, calling it everything from “rat poison squared” to “a useless pet rock.”
Early indications suggest that BTC may be displacing gold as the dominant cryptocurrency, at least in relation to exchange-traded funds. In addition, over the course of the next decade, multiple industry analysts anticipate that the cryptocurrency will outperform the precious metal. However, such a price tag is currently unimaginable, to put it mildly.
Many market analysts had anticipated the $10 billion threshold for an extended period of time, particularly in light of the daily inflow volumes recorded by BlackRock. This past week, on February 27, the spot BTC ETF witnessed its largest inflow to date, totaling $520 million, out of a net inflow of $577 million.
