Bitcoin (BTC)'s dominance in the cryptocurrency market has surpassed 49%, reaching its highest level in more than two years.
According to data from CoinGecko, Bitcoin's dominance currently stands at 49.58%, almost three times the dominance of Ethereum (ETH), the second-largest crypto by market cap, which sits at around 16.7%.
This steady increase in dominance, starting from around 38% at the beginning of the year, signifies a significant surge in Bitcoin's market share.
The rise in Bitcoin's dominance can be largely attributed to its year-long rally, with the cryptocurrency's price surging by 81% since the start of 2023.
This impressive performance has solidified Bitcoin's position as a leading force in the market.
There are several factors that could have contributed to the surge.
First, concerns over inflation, geopolitical risks, and the increasingly polarized U.S. government have prompted investors to seek safe-haven assets, minimizing their exposure to risk.
Bitcoin, with its decentralized nature and limited supply, has emerged as an appealing option for those seeking stability amidst uncertainty.
Additionally, the possibility of a Bitcoin exchange-traded fund (ETF) gaining regulatory approval has further bolstered confidence in the cryptocurrency.
A Bitcoin ETF approval would provide mainstream investors with an accessible and regulated avenue to invest in Bitcoin, potentially attracting a significant influx of capital into the market.
As reported, crypto financial services platform Matrixport has predicted a major Bitcoin rally if a spot ETF hits the market.
Comparing this to the precious metals ETFs, which have a market cap of around $120 billion, assuming that 10-20% of precious metal ETF investors considerRead more on cryptonews.com