Bitcoin dominance has surged to its highest level in years, reaching 58%, indicating continued interest in BTC. This metric, which measures Bitcoin’s share of the total cryptocurrency market capitalization, shows that BTC is once again dominating the market. The rise in Bitcoin dominance suggests that investor confidence is increasing, potentially paving the way for further upward movement.
As of today, Bitcoin is trading around $66,940, with some fluctuations ahead of the U.S. elections. Despite a 1% dip in the last 24 hours, Bitcoin is still pushing toward its all-time high, although it continues to face resistance at certain levels.
Bitcoin’s Performance Amid Market Fluctuations
While Bitcoin has been relatively stable over the past week, its performance over the past month has seen a 5% rise, and over the last six months, it has gained 3.70%. Despite this stability, the price has been volatile, which is reflected in its year-to-date chart, showing a 58% increase. Additionally, compared to the same period in 2023, Bitcoin’s price has surged by 102%, indicating a fluctuating but generally upward trend.
Currently, Bitcoin boasts a market capitalization of $1.32 trillion and has shown some improvement in sync with its price. While it experienced a slight 0.33% drop over the past week, Bitcoin has gained just over 5% on a monthly basis.
Bitcoin Dominance Hits Monthly Peak
As Bitcoin’s price continues to fluctuate, its dominance in the market, as measured by the BTC.D chart, keeps rising. Despite a price drop in the last 24 hours, the dominance chart has climbed, reaching 58.6%, the highest level in the past year. With more than half of the market under its control, Bitcoin continues to strengthen its dominance.
In November 2022, Bitcoin dominance fell below 40%, but since then, it has steadily risen, gaining 1.03% in the past month, 6.7% in the past six months, and 9.65% in the past year. Since the start of 2024, Bitcoin dominance has increased by 13.55%.
What Is Bitcoin Dominance?
Bitcoin dominance (BTCD) refers to the percentage of Bitcoin’s market value compared to the total market value of all cryptocurrencies. This percentage shows Bitcoin’s influence over other cryptocurrencies and its dominance in the market.
The formula to calculate Bitcoin dominance is as follows: Bitcoin Dominance (%) = (Bitcoin Market Cap / Total Crypto Market Cap) × 100
For example, if Bitcoin’s market cap is $600 billion, and the total crypto market cap is $1.5 trillion, the Bitcoin dominance rate would be 40%, meaning Bitcoin holds 40% of the total market value.
Bitcoin dominance is a valuable tool for investors to gauge market trends and assess Bitcoin’s overall performance. A higher dominance rate implies Bitcoin is leading the market, while a declining rate may indicate the rise of alternative cryptocurrencies.
