The Unwavering Behemoth
In an unprecedented move, Bitcoin's (BTC) dominance rate surged, accounting for nearly half of the $1 trillion crypto market. This significant uptick occurred as the altcoin market endured a harsh crash, triggering a mass migration of investors seeking the relative safety of the world-renowned cryptocurrency.
Altcoins Bite the Dust as Bitcoin Soars
On an early Saturday morning, Bitcoin's share in the total crypto market capitalization reached the 50% mark for the first time since April 2021, according to data tracked by the charting platform TradingView. The shift coincided with alternative cryptocurrencies (altcoins) like SOL, MATIC, DOGE, and ADA experiencing severe double-digit losses. These losses were allegedly spurred by rumors of a $2 billion portfolio dump by a proprietary trading firm.
Despite the tumultuous market, Bitcoin lost a mere 3%. This relative outperformance is thought to have been driven by increased haven demand - investors fleeing the volatile altcoin market and taking refuge in Bitcoin, the world's largest and most liquid cryptocurrency.
The Rise and Rise of Bitcoin
Bitcoin's dominance rate has been on an upward trajectory since November, experiencing a noticeable surge during the March U.S. banking crisis. The indicator now appears to be breaking out of its three-year oscillation pattern, suggesting continued Bitcoin outperformance in the months ahead, according to Lewis Harland of Decentral Park Capital.
Notably, Tether, the world's largest dollar-pegged stablecoin, also seemingly benefited from Saturday's risk aversion. Its dominance rate jumped 5% to 7.82%, the highest since January 8, as per TradingView data1.