The metric of bitcoin dominance, which represents bitcoin’s share of the total cryptocurrency market, has risen to a two-month high, reaching almost 50%. This surge in bitcoin dominance suggests that investors are showing a growing preference for bitcoin over alternative cryptocurrencies (altcoins) amidst a cooling-off period in the crypto markets following substantial gains. The dominance of bitcoin influences market sentiments and shapes investment strategies, reflecting its status as a dominant force in the crypto landscape.
bitcoin Takes the Lead: A Shift in Crypto Market Sentiment
As of now, bitcoin (btc) is valued at $61,831.45, representing a 1.2% increase from the previous day and a 0.7% increase over the last hour. Over the past seven days, bitcoin has gained an impressive 21.2%. In contrast, the total cryptocurrency market capitalization currently stands at $2.41 trillion, marking a change of -0.16% over the past twenty-four hours and an impressive 114.13% growth compared to one year ago.
bitcoin holds a market capitalization of $1.22 trillion, accounting for 50.32% of the total crypto market capitalization. Stablecoins, meanwhile, have a market cap of $143 billion or 5.92%. The bitcoin Fear and Greed Index currently stands at 80, which indicates extreme greed.
The crypto markets have experienced significant shifts over the past week. Just last weekend, bitcoin stagnated between $51,000 and $52,000 and failed to break over the latter. However, on Monday, the bulls initiated a powerful surge, leading to gains of several thousand dollars in hours. By Tuesday, bitcoin had reached almost $60,000, surpassing that threshold on Wednesday and reaching an all-time high of $64,000.
This highest price in over two years was met with a harsh rejection, resulting in a sharp decline that saw bitcoin drop by more than $5,000 in minutes and left millions in liquidation. Despite this setback, its market capitalization remains significantly higher than $1.2 trillion, making bitcoin one of the top ten largest financial assets.
bitcoin Ranks among Top Ten Financial Assets
In its less fortunate days of 2022 and early 2023, bitcoin had fallen to below $20,000 due to industry collapses, multiple bankruptcies, and macroeconomic events such as wars, rising interest rates, and inflation. However, the situation began to change in mid-2023 when BlackRock filed for a spot bitcoin ETF, followed by numerous other financial institutions. The narrative surrounding bitcoin ETFs shifted to “it’s a matter of when not if,” and this arrived in early 2024. By then, bitcoin had already risen above $40,000 due to the excitement surrounding these ETFs.
Despite the volatility, bitcoin’s value continued to rise, particularly in late January and February. The asset went from $44,000 on February 7 to more than $61,000 earlier today, indicating a particularly beneficial period for bitcoin investors. This remarkable performance places bitcoin not only as the largest cryptocurrency by market capitalization but also among all Website contact forms of financial assets.
According to market-cap/” rel=”nofollow noopener” target=”_blank”>CompaniesMarketCap, bitcoin is currently the tenth largest asset by market capitalization, surpassing financial giants like Berkshire Hathaway and JPMorgan Chase. It is particularly noteworthy that the CEOs of these two behemoths, Warren Buffett and Jamie Dimon, have been critical of bitcoin for years, labeling it anything from “rat poison squared” to “a useless pet rock.”
Preliminary data suggests that bitcoin might be replacing gold as the dominant cryptocurrency, at least when it comes to exchange-traded funds. Several industry analysts anticipate that bitcoin will outperform gold over the course of the next decade, though such a price tag remains unimaginable for now.
The spot bitcoin ETF experienced its largest inflow to date on February 27, totaling $520 million out of a net inflow of $577 million. This past week’s performance has left many market analysts anticipating the $10 billion threshold for an extended period, given the daily inflow volumes recorded by BlackRock.
