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ETF Adoption Drives $BTC Dominance to Highest Level Since 2021
Bitcoin's market dominance has hit a three-year high, indicating strong demand for US spot Bitcoin ETF holding the biggest digital asset and a difficult era for lesser tokens.
Last week, bitcoin made up than 55% of the $2.4 trillion digital asset market, a figure not seen since April 2021. BTC briefly reached $67,000 on Saturday, boosting its domination to 57%.
Ethereum (ETH), Tether's USDT stablecoin, Binance Coin (BNB), and Solana follow Ethereum in market share.
Successful US Bitcoin ETF Launches Fuel BTC Rise
Bloomberg reports that BlackRock and Fidelity Investments' newly licensed US spot Bitcoin ETFs have helped boost Bitcoin.
These ETFs have $56 billion in assets, making their launch one of the most successful in fund category history.
After inflows into these ETFs propelled BTC to its current all-time high (ATH) of $73,798 in mid-March, it was unable to consolidate above $70,000, indicating a resistance level for the biggest cryptocurrency.
Smaller digital assets like Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have fallen roughly 30% in the last month, while BTC is down 6%.
Hong Kong-Listed ETFs Increase Bitcoin, Ethereum
Institutional investors' US Bitcoin ETF allocations have profoundly impacted Bitcoin's market performance.
Bitcoin and Ethereum, the second-largest cryptocurrency, rose on Monday after asset managers announced plans to create Hong Kong-listed ETFs on both coins. Bitcoin climbed 4.3% to $66,575 and ETH 6.2% to $3,260.
These rallies lifted the larger crypto market, pushing Polygon (MATIC), Cardano (ADA), Dogecoin (DOGE), and Solana, the top 5 cryptocurrency market winner, up over 8% on Monday.
Finally, investors and traders anxiously await the April 20th Bitcoin Halving, which will halves the token supply.
Previous Halving occurrences have boosted prices, but BTC's recent all-time high raises questions about repeating history.
