Bitcoin Dominance Rises to 3-Year High
Bitcoin (BTC.D) dominance in the cryptocurrency market has reached its highest point since 2021. This surge coincides with a rise in the price of Bitcoin over several months, indicating a growing preference for Bitcoin and Bitcoin-based investment products.
However, this surge in dominance has raised concerns among analysts. Some believe it signals a local top for the coin, hinting at a potential price correction in the short term.
Bitcoin Dominance May Be Coming to an End
Bitcoin dominance measures the market capitalization of the leading cryptocurrency relative to the total market capitalization of all other cryptocurrencies. At the time of writing, it stands at 58.76, its highest level since April 2021.
The rise in BTC.D suggests that Bitcoin maintains a significant share of the market. However, since peaks in dominance often coincide with market tops, analysts often consider this metric to be an indicator of different market cycles. Some believe that the current rise in BTC.D indicates that Bitcoin may soon reach a local top.