The cryptocurrency has been gradually gaining market share over altcoins with bitcoin dominance now at its highest level in more than four years.
BTC Price Steady at $94K but Market Dominance Climbs Over 65%
Bitcoin (BTC) now accounts for more than 65% of the entire $2.93 trillion crypto market, the highest level of bitcoin dominance since January 2021, according to data from Coinmarketcap and Tradingview. The digital asset hovered around $94K on Tuesday in what has been mostly sideways price action.
BTC gained roughly 0.30% over 24 hours, while all the other top ten cryptocurrencies tumbled, with the exception of stablecoins. The recent surge in dominance is likely a combination of increased institutional demand and an uptick in price coupled with a slump in altcoin performance.
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Conversely, the second-largest cryptocurrency, ether (ETH), is down roughly 43% year-over-year, according to Coinmarketcap, with the ETH/BTC ratio sinking to a 5-year low. The ratio divides the price of ether with the price of bitcoin to determine how much BTC is required to purchase one ETH. When bitcoin outperforms ETH, as has been the case lately, the ratio decreases.
(ETH/BTCratio / Tradingview)
While a high dominance ratio is generally good for bitcoin, some chart analysts claim that above a certain threshold, altcoins become undervalued and a shift takes place where traders begin acquiring these undervalued cryptocurrencies, triggering a bull market and potentially crashing the high BTC dominance ratio.
“BTC dominance might be nearing its peak, and once it reaches the upper zone, we could start seeing altcoins gain more strength as dominance falls,” said analyst Ijaz Awan in a post on X.
Overview of Market Metrics
Bitcoin saw a modest 0.30% gain over the past 24 hours and rose to $94,562.34 at the time of reporting, according to Coinmarketcap. The cryptocurrency traded between $93,399.86 and $95,193.19 during the period, showing relatively narrow movement. While daily momentum is positive, BTC remains down slightly by 0.60% over the past seven days, reflecting mild short-term volatility.
(BTC price/ Trading View)
Trading activity showed renewed interest, with 24-hour volume climbing 14.55% to $22.62 billion. Bitcoin’s market capitalization also rose by 0.32% to $1.87 trillion, indicating an uptick in capital inflows. As discussed above, BTC’s dominance over the broader crypto market increased by 0.40% to 65.10%, underscoring its continued outperformance relative to altcoins.
(BTC dominance / Trading View)
On the derivatives front, BTC futures open interest fell by 1.05% to $62.62 billion, suggesting a pullback in leveraged trading. Coinglass data shows total liquidations reached $545,400 over the past 24 hours, with long positions accounting for the bulk at $365,370, compared to $180,030 in short liquidations.