The dominance of Bitcoin in the digital asset market has risen to a two-year high, indicating that it remains resilient to wider market forces, including concerns over inflation and geopolitical risks.
According to data from The Block, Bitcoin dominance now stands at 49.58% of the market – the highest level since April 2021. Data from TradingView shows a slightly higher figure, with dominance nearing 53%.
Bitcoin dominance already at the highest peak it's reach in two years, and approaching 53%.. Is this the start of the bull run? pic.twitter.com/mvkhSRMhEd
— Emily Vadal 🆙 🌺 (@Em_vadal) October 22, 2023
Bitcoin dominance is a metric that measures Bitcoin’s market capitalization as a percentage of the total cryptocurrency market capitalization. It is typically used to gauge market sentiment and the relative performance of altcoins compared to the leading digital asset.
Data also shows that spot volumes across crypto exchanges have lifted over the last few weeks as Bitcoin approaches a crucial resistance level of $31,000. At the time of writing, Bitcoin was trading at $30,926, gaining 2.16% over the last 24 hours.
“BTC dominance has not had a weekly close below its bull market support band for all of 2023. Every ‘Alt season’ narrative so far this year eventually died a few weeks later. Dominance will likely keep rising for the rest of the year,” said ITC founder Benjamin Cowen on X.
Meanwhile, Glassnode’s researchers found that the current market structure resembles the recovery phase from a major bear market, with similarities to both 2016 and 2019.
“Both the wider market, and the Long-Term Holder NUPL [Net Unrealized Profit/Loss] are currently positive, indicating the average investor is in profit,” wrote Glassnode analysts in the firm’s latest newsletter.
“These active investors are near their break-even level, suggesting that the $28k level is an important decision point for the market,” they added.