Bitcoin's market dominance has reached new highs, with bitcoin continuing to strengthen at the expense of altcoins.
On September 16, #bitcoin dominance reached 58%, according to Tradingview. This is the highest level since April 2021 after nearly two years of steady gains.
BTC's dominance fell below 40% in November 2022 after the collapse of FTX, and during the brutal bear market that followed, the asset fell to a low of $16,000. Since then, it has rallied and #altcoins , especially #Ethereum with its shrinking market share, have been the losers.
According to Trading View, Ethereum's share has fallen 30% over the past year and this week fell below 14% for the first time in three and a half years. This has also contributed to BTC's share gains.
On September 16, analysts at Rekt Capital turned their attention to BTC's market share, noting that the weekly close was 57.68%, above key support/resistance levels for the first time since April 2019.
He added: The last such weekly close kicked off a multi-month uptrend with bitcoin dominance reaching 71%.
The last time #BTC dominance reached 70% was in early 2021, but quickly fell to 40% within four months of that year's altcoin season.
Other analysts are not convinced and believe bitcoin dominance has peaked and that withdrawals will be the start of the altcoin season in this cycle. Cryptolica told its 30,000 X subscribers that bitcoin dominance could drop to 35% by mid-2025.
Meanwhile, crypto youtuber Kyle Dopes supported this view in a post on the X website on September 17.
This turning point could affect market trends and change the entire cryptocurrency ecosystem, especially altcoins.
Stephen Cook, founder and CIO of Dira Capital, agreed, saying earlier this week that despite all the talk of bitcoin dominance, this move will be close to final.
It may be a few more months before BTC Dom rises to 60%. But the time to call it BTC Dom was ~2 years ago.
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