- Bitcoin’s price rose on Monday, adding $30 billion to the crypto market.
- Bitcoin’s dominance, a measure of its market share, reached a 31-month high, indicating strength.
- This surge is attributed to renewed interest in Bitcoin’s fundamentals, institutional support, and reduced selling pressure, solidifying its position in the cryptocurrency market.
Bitcoin leaped 2% early Monday, adding $30 billion to crypto market caps. But here’s another potentially bullish portent for BTC: according to data from TradingView, Bitcoin dominance just reached a 31-month high.
Bitcoin Dominance at A 31-Month High
Dominance is crypto industry jargon for a coin’s percentage of market share as measured by total market capitalization. Think of it as the size of each coin’s piece of the market cap pie.
As TradingView explains:
” It’s a great way to see how big a coin is relative to the whole crypto market — the value of everything is in comparison. It’s calculated by dividing a coin market cap by the overall market cap of the top 125 coins and then multiplying it by 100.”
That’s positive news for Bitcoin price after several weeks spent in a slowly downward trending lull since June. Meanwhile, the Ethereum vs. Bitcoin “Flippening” Index recently arrived at a 15-month low of 35%.
Bitcoin Price Spikes Monday
On Monday, Bitcoin bulls took the old Satoshi chain’s coin on a brisk launch up the price charts:
After several days of underwhelming price performance, bitcoin finally initiated a notable leg-up that drove it north by over a grand… the altcoins have followed suit.”
But Bitcoin’s competitive market share has been steadily growing since October 2022, when Bitcoin dominance reached a chart bottom almost exactly a year ago after a long tumble from 71% in Nov 2020.
Bitcoin dominance hasn’t been this high since Mar 2021.
Why Bitcoin Dominance Is Soaring
Crypto investors are coming back around again to Bitcoin’s fundamental underlying thesis.
The soundness of decentralized banking, with a well-designed peer-to-peer network of qualified nodes, finally makes sense again in the wake of the FTX trials highlighting CeFi’s failures.
This is likely an explanation because the rise in Bitcoin dominance has coincided perfectly with the months since the collapse of FTX, Luna-Terra, and several crypto banks and CeFi ventures.
Meanwhile, 50% of bitcoin hasn’t moved in a year.
According to Forbes Digital Assets:
Coupled with the institutional desire to see bitcoin products approved and start trading reinforces the fact that bitcoin is increasingly viewed as an asset class, and that bitcoin continues to separate itself from the slew of other tokens projects that have flooded the marketplace in the last several years reinforces this trend.
So, there’s less selling pressure for BTC on crypto exchanges, and holders have a strong conviction in it. That’s a strong contributor to Bitcoin’s dominance over competing cryptocurrencies.