Important development in Bitcoin dominance: Watch out for altcoins!

BitcoinLooking at market dominance, there was an increase from below 50 percent at the end of May to 52.92 percent at the weekend.

Bitcoin , is the largest crypto asset by market cap, and its market dominance hasn’t fluctuated much over the past year. It has risen since last summer, staying between 44 percent and 53 percent, as excitement around spot ETF approvals pushed bitcoin higher than its peers.

Bitcoin dominance suppresses altcoins

Bitcoin’s dominance reached 52.86 percent, its highest level since April 2021. This is Bitcoin’s dominance ETFIt was the culmination of a sharp rise in Bitcoin’s position relative to other assets, as it continued to rise after its approval and amid the horrors of wider conflict in the Middle East.

After that, while Bitcoin’s dominance remained high compared to the level between late 2021 and early 2023, its dominance in the market began to decrease as other assets such as memecoins became popular. Ether also had its moment to shine with spot ETF approvals on March 23.

However, Bitcoin’s dominance rose again this weekend, reaching a new high not seen since April 2021, the beginning of the first major bull market, which helped other crypto assets reach huge market caps.

Bitcoin itself hasn’t been performing all that well over the past few days, and has been drifting a bit after the Fed announced that it expects only one interest rate cut in 2024 and a 5.3 percent drop last week. However, many tokens remained in a worse situation. Most major coins were doing well, but some smaller tokens such as FLOKI, STRK, IMX, and FIL experienced double-digit declines over the past seven days.