Bitcoin Dominance will be high for four years, because BTC price is $ 97,000

Bitcoin’s dominance of the cryptocurrency market today reached 64.89%, the highest level since January 2021, as the Price of Bitcoin On Friday morning $ 97,000.

The dominance of BTC – the capitalization of its capitalization as a percentage of the PET of the entire market – has risen according to the trade data of around 57.90% at the start of the year.

It had fallen to 55%at the beginning of December, because euphoria pushed the Altcoin prices to new highlights after the election victory of Donald Trump.

Nevertheless, this positive sentiment changed to anxiety and uncertainty when the Trump administration started to impose (and increase) the rates in February and March, so that investors dampen the appetite for altcoins.

And while Bitcoin himself was hurt by the Fall -Out of the rate, recent exemptions and compromises of the Trump administration have stimulated the cryptocurrency, without inviting a complete recovery for many large alts.

Bitcoin’s Vrijdagstoot up to $ 97,000 it brings it to only 10.9% below the all times of $ 108,786 in January, while people like Ethereum” Solana And Dogecoin are respectively with 54%, 43% and 61% on highlights in December or January, per data from Coingecko.

At the time of publication, Bitcoin was somewhat withdrawn to $ 96,947, an increase of 0.7% in the day.

Bitcoin’s first-mover benefit

For David Morrison, a senior market analyst at Trade Nation, Bitcoin has surpassed the most alts in recent months for various reasons, including the first Mover benefit.

He told Decrypt“It has a high acceptance compared to his colleagues and the more speculative coins thanks to the relatively friendly regulatory environment, which according to this Trump government is expected to improve further.”

Morrison also explains that, even during more bearish periods, investments in Bitcoin remain attractive for retail and institutions because the “offer is strictly limited”, unlike many alts.

“It has also demonstrated resilience despite recent turbulence of the market, and investors can now see a considerable history of bounce backs after large pullbacks,” he added.

This can be the key for as long as the rates weigh the US and the world economy, with the relative resilience of Bitcoin during this period to probably help to increase the dominance of market capitalization.

Investor Flight stimulates Bitcoin

The position of Bitcoin has also been helped by investor flight from American treasuries and other assets-based assets, with Bitcoin ETF streams that this week exceeded Gold ETFs for Gold ETFs.

“Institutional demand can help to increase the market dominance of Bitcoin, especially if it will rise further and more than 70% breaks,” said Morrison. “There is much more confidence in Bitcoin than most altcoins, although a few of the latter should benefit because of their specific use.”

On the other hand, the situation can change or reverse if the US succeeds in coming up with a kind of satisfactory resolution or trade agreement with China, not to mention the rest of the world.

There have been signs that the Trump government is willing to negotiate with its Chinese counterpart, with Beijing currently “evaluating” an offer of trade discussions.

If the macro -economic image improves, this can ultimately lead to a more bullish cryptocurrency market, which in turn could reduce the dominance of Bitcoin on time.

“Rising risky appetite, should it go, has usually led investors and traders to increase their horizon outside of Bitcoin,” said Morrison. “There must be decent possibilities for more speculative coins, and some of them can undoubtedly perform Bitcoin better in percentage profit.”