Bitcoin dominance reaches 62.29%, marking its highest point since 2021, impacting altcoin performance.
Bitcoin Dominance Hits 62.29% High Since 2021
Bitcoin dominance hit a new high at 62.29%, its highest point since March 2021. The increase began after February 2, maintaining above 60% for weeks.
The ETH/BTC ratio has dropped, marking its lowest level in nearly five years. Bitcoin currently trades at $83,667, while Ethereum stands at $1,907.
Market Fear as Bitcoin Overshadows Altcoins
Increased Bitcoin dominance often signals a shift in investor confidence towards Bitcoin. With altcoins under pressure, market volatility remains. The market reflects a “Fear” sentiment.
Economist Alex Kruger suggested considering higher beta altcoins. Meanwhile, Hansolar predicted a prolonged Bitcoin season, citing historical market behavior.
High Bitcoin Dominance Linked to Market Rallies
Previous instances of high Bitcoin dominance in 2019 and 2021 preceded broader market rallies. This trend hints at potential upcoming market dynamics.
Alex Kruger and others emphasize possible transitions to altcoins if Bitcoin’s dominance sees future declines, backed by historical data trends and current market analysis.
