Bitcoin's dominance hits 30-month high.
Bitcoin's market dominance has reached a 30-month high of 54%, indicating the top cryptocurrency's growing strength leading up to the halving event in April 2024.
The Bitcoin halving occurs every four years, reducing the mining reward per block and lowering the influx of new Bitcoin into the market. With the next halving, the reward will be cut from 6.25 BTC to 3.125 BTC per block.
As Bitcoin's supply growth slows while demand rises, its dominance increases. Bitcoin maintained over 80% dominance in the 2017 bull market, but it fell to the 50-60% range in the 2021 bull run.
Now, ETF excitement and the halving event have brought its dominance back up to 54%, the highest level since April 2021. The rise coincided with Bitcoin rallying above $30,000 amid news of a potential spot Bitcoin ETF approval in the US.
Noelle Acheson, a market analyst, says Bitcoin's safe-haven appeal and ETF momentum have helped boost its dominance over altcoins like ether. She notes Bitcoin tends to lead in early market cycles before investors get more comfortable with higher-risk assets.
With Bitcoin beating most altcoins in recent performance, its bullish momentum could signal an eventual altcoin rally once money begins flowing from Bitcoin into other crypto assets. For now, its dominance reflects its strength as the crypto market awaits the next major catalyst.
