📈 Bitcoin Dominance Reaches Four-Year High Amidst Altcoin Struggles
📊 Bitcoin (BTC) has achieved a dominance level of over 65% in the cryptocurrency market, the highest since January 2021, while its price remains steady around $94,000. This surge in dominance comes as altcoins, particularly ether (ETH), face significant declines.
BTC dominance might be nearing its peak, and once it reaches the upper zone, we could start seeing altcoins gain more strength as dominance falls,
said analyst Ijaz Awan.
📉 Ether has dropped approximately 43% year-over-year, with its price ratio against Bitcoin hitting a five-year low. This indicates that when Bitcoin outperforms Ether, the amount of BTC needed to purchase one ETH decreases.
🔍 Despite Bitcoin's high dominance being generally favorable, some analysts warn that if it exceeds a certain threshold, altcoins may become undervalued. This could lead to a market shift where traders start acquiring these undervalued cryptocurrencies, potentially triggering a bull market for altcoins and reducing Bitcoin's dominance.
📈 In the past 24 hours, Bitcoin saw a modest gain of 0.30%, bringing its price to $94,562.34. Trading activity has shown increased interest, with a 14.55% rise in 24-hour volume to $22.62 billion. Bitcoin's market capitalization also increased by 0.32% to $1.87 trillion, highlighting its continued outperformance compared to altcoins.
📉 However, on the derivatives side, Bitcoin futures open interest fell by 1.05% to $62.62 billion, indicating a pullback in leveraged trading. Recent data shows total liquidations reached $545,400 over the past 24 hours, primarily from long positions.
