Bitcoin has again taken centre stage in the world of cryptocurrencies, with its price surging past the $35,000 mark. The recent Bitcoin surge, fueled by small investors and hopes for a Bitcoin ETF approval, has amazed observers. This article explores the concept of Bitcoin dominance and how it has played a pivotal role in shaping the crypto landscape in recent times.
Bitcoin Dominance Index Reaches New Heights
The potential approval of a spot Bitcoin ETF sparked a short squeeze, propelling Bitcoin’s price beyond the $30,000 mark. The rapid liquidation of $250 million in short positions within three days highlighted Bitcoin’s formidable influence during bullish phases. At the same time, the Bitcoin Dominance Index (BDI), which measures Bitcoin’s share of the overall crypto market, reached levels that have not been seen since April 2021.
This rise in Bitcoin dominance is not an isolated event but rather part of a trend unfolding for nearly a year. Following the FTX exchange collapse in November 2022, the BDI surged to 54.4%, marking its highest point since April 2021. This trend has highlighted the inability of other cryptocurrencies to keep pace with Bitcoin during this latest Bitcoin bull run.
Bitcoin’s Lead Over Altcoins
Bitcoin’s impressive dominance persists, leaving other cryptocurrencies struggling to emulate its success, as they were once the market’s favourites. Ethereum, for instance, has only seen a 14.0% increase in the past year, starkly contrasting Bitcoin’s impressive 66.0% gain. This stark divergence underlines Bitcoin’s unassailable dominance, leaving many wondering if the altcoins will ever catch up.
In conclusion, amid the current Bitcoin bull run, Bitcoin dominance has reached its zenith, reflecting the digital currency’s status as the undisputed leader in the crypto market. Bitcoin’s relentless rise captures attention, leaving other cryptocurrencies lagging, an ongoing pattern that has persisted for nearly a year. Bitcoin’s enduring influence continues to offer abundant opportunities for investors and crypto enthusiasts, creating many new projects, such as Bitcoin banks, outpacing the rest of the market.
Crypto Humour:
Why did the computer go shopping with Bitcoin? Because it wanted to see “what can you buy with Bitcoin!”
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