According to U.Today, Bitcoin's dominance in the cryptocurrency market has surged to nearly 60%, marking a significant increase of almost 10% over the past month. This is the highest market share for Bitcoin since April 2021, a period when its dominance had dramatically dropped by 16.64% within a single month. The current rise in Bitcoin's market share indicates a lack of an altcoin season, with the flagship cryptocurrency maintaining its stronghold in the market.
In September 2022, Bitcoin's dominance had briefly fallen below the 40% mark, reaching a local low of 38.84% amid a challenging bear market. However, Bitcoin has since regained its position, and according to Singapore-based digital asset trading firm QCP, its dominance is expected to continue climbing as it approaches a new record high. This resurgence suggests that Bitcoin is unlikely to lose ground to altcoins in the near future.
Recently, Bitcoin experienced a brief plunge following a Wall Street Journal report about an ongoing criminal investigation into stablecoin issuer Tether by the U.S. government. Despite this, Bitcoin quickly recovered its losses after Tether's CEO Paolo Ardoino downplayed the investigation as "old noise." At the time of reporting, Bitcoin is trading at $67,130, according to CoinGecko data.
Analyst James Van Straten has noted that this market cycle is different, with minimal capital rotation from Bitcoin into Ethereum. He describes this trend as a "flight to quality," indicating that investors are favoring Bitcoin over other cryptocurrencies. This is further evidenced by the fact that Ethereum, the largest altcoin, recently hit a multi-year low against Bitcoin.
