Bitcoin dominance has been on an uptrend
Bitcoin dominance, which measures the market capitalization of Bitcoin as a share of the total crypto market, rose to a high of 53.47% during the month, a level not seen since April
2021. Bitcoin prices have been on a general upward trend throughout October, crossing the US$35K mark at one point. Just in October alone, Bitcoin prices have surged more than 28%, recording one of the best months for the asset we have observed in a while. Rising prices have contributed to an increase in Bitcoin dominance to a 2.5-year high.
Optimism behind spot ETF approvals has driven Bitcoin prices higher, and the rally was also fueled by investors covering their short positions. For example, based on data from CoinGlass, Bitcoin saw more than US$275 million in short liquidations in a single day on October 23, 2023.
Fun fact: the rise in Bitcoin dominance has coincided with the 15th anniversary of the Bitcoin whitepaper, which was published on October 31, 2008.