Bitcoin market cap dominance has reached 54.5, according to data provided by TradingView. This marks the highest value in this metric for Bitcoin since July 2021.

A coin dominance is a ratio of its market cap to the cumulative market cap of cryptocurrencies. It is calculated by dividing the coin's market cap by the overall market cap of the top 125 coins and multiplying it by 100.

The fact that Bitcoin has hit a three-year high in dominance could indicate a potential altcoin bull run.

#Altcoins The breakout of the rising wedge on #Bitcoin dominance is confirmed. After weeks of corrections this could be the time for #Alts to recover and more. pic.twitter.com/kyaOe4WNSE

— Titan of Crypto (@Washigorira) July 11, 2024

Source: Titan of Crypto

Glassnode co-founders support this view based on risk-on market. This indicates that investors are placing their bets on riskier assets that are likely to generate greater returns.

Rotation coming?Yesterday, we saw how #Nasdaq declined >2% - while #IWM rallied >3%.This is a clear indication of Rotation. The move to riskier assets.Will we also see this is #BTC and #Alts?Well - in November 2020, we had a day just like yesterday. IWM soared and… pic.twitter.com/WG9pooRxh1

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 12, 2024

Analysts pointed to the fact that the tech-heavy Nasdaq index declined 2% on Thursday. For comparison, the iShares Russell 2000 ETF (IWM), an index that is composed of small-capitalization stocks, was up more than 3%.

This indicates that investors are placing their bets on riskier assets that are likely to generate greater returns.