Bitcoin's market dominance has reached a year-to-date high of 57%, reflecting bitcoin's growing share of the total cryptocurrency market capitalization.
Bitcoin recently set a new all-time high above $90,000, contributing to the broader crypto market cap reaching $3 trillion. This level of dominance marks a significant shift from the previous cycle's low of 39% during the DeFi boom in May 2021.
The current market structure shows interesting divergences from previous cycles:
Historical patterns from previous cycles provide context for current market dynamics.
During the last cycle, bitcoin's declining dominance to 39% coincided with the peak of the DeFi movement and subsequent altcoin rallies. The current 57% dominance level, coupled with bitcoin's price strength, could signal that we are at the start of this cycle while bitcoin enters price discovery.
Historical patterns offer perspective, but several factors distinguish the current cycle. Institutional participation through spot crypto ETFs has created new market dynamics. Traditional correlation patterns between bitcoin dominance and altcoin performance may not hold in this market environment the way they have previously.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
