According to U.Today, Bitcoin's market cap dominance has reached 54.5%, the highest level since July 2021, based on data from TradingView. Market cap dominance is calculated by dividing a coin's market cap by the cumulative market cap of the top 125 cryptocurrencies and multiplying by 100. This significant rise in Bitcoin's dominance could signal a potential altcoin bull run.
Glassnode co-founders support this view, suggesting that investors are shifting towards riskier assets with the potential for higher returns. This trend is further evidenced by recent market movements. On Thursday, the tech-heavy Nasdaq index declined by over 2%, while the iShares Russell 2000 ETF (IWM), which tracks small-cap stocks, rose by more than 3%. This rotation towards riskier assets could also be reflected in the cryptocurrency market, potentially benefiting both Bitcoin and altcoins.
Analysts have noted that similar market behavior occurred in November 2020, when a significant shift towards riskier assets was observed. The current market dynamics suggest that investors are once again seeking higher returns by moving into riskier investments, which could bode well for the broader cryptocurrency market.