Bitcoin’s market dominance just surged to a multi-year high, signaling that the king crypto is gaining strength at the expense of altcoins. On September 16, Bitcoin’s dominance hit 58%.
You either have a dollar in Bitcoin, or in another currency. But the same dollar can’t be in both.
Bitcoin’s dominance was below 40% in November 2022 after the collapse of FTX, which caused its price to plummet to a low of $16,000 during a bear market, or more widely known as the crypto winter.
Since then, Bitcoin increased its market share without a pause, leaving altcoins behind, especially Ethereum, which has seen its dominance drop quite big time.
Ethereum’s market share lost 30% over the past year and dipped below 14% this week for the first time in three and a half years. Among investors and savers, it seems Bitcoin is the favorable.
Bitcoin dominance and market dynamics
A popular analyst ‘Rekt Capital’ shared in the social media that Bitcoin’s market share closed at 57.68%, surpassing a key support and resistance level for the first time since April 2019.
Bitcoin Dominance has made history
It has Weekly Closed above 57.68% (green) for the first time since April 2019
That's 5 years ago
The last time such a Weekly Close occurred, it kickstarted a multi-month Bitcoin Dominance uptrend to 71% (red)$BTC #Crypto #Bitcoin https://t.co/W8Uggsg4T8 pic.twitter.com/16276CADjN
— Rekt Capital (@rektcapital) September 16, 2024
He pointed out that the last time such a weekly close occurred, it started a multi-month uptrend in Bitcoin dominance that reached 71%.
While Bitcoin last topped 70% in early 2021, it quickly fell to around 40% during the following altseason.
Market is changing all the times
This outlook is bullish from some analysts, but others believe that Bitcoin’s dominance may be peaking now, and from here, we will see only downslide.
Analyst ‘Cryptollica’ shared on X that a drop in dominance to 35% by mid-2025 is quite expectable.
#Bitcoin Dominance 🍭💰 pic.twitter.com/QQ0j7i0GaE
— Cryptollica⚡️ (@Cryptollica) September 16, 2024
Similarly, crypto YouTuber Kyle Doops expressed that this shift could really affect market trends and reshape the overall crypto trading, especially during the next altseason.
The crypto market has seen a decline of 1.4% in the past days, with total market capitalization falling to $2.11 trillion.
Bitcoin managed to reclaim the $58,000 level during the Tuesday morning trading session in Asia after dipping below it on Monday evening, but Ethereum continues to struggle and is unable to break above $2,300, trading at $2,280 at the time of writing.
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