Bitcoin Dominance Reaches 54% as Leading Cryptocurrency Sustains Rally Amid Spot ETF Optimism

Bitcoin Ethereum
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: Adobe/Wit

Bitcoin (BTC)‘s market dominance has reached 54%, its highest level in more than two and a half years.

According to data from TradingView, Bitcoin’s dominance currently stands at 53.76%, down by almost 1% over the past day.

The chart shows that Bitcoin dominance reached as high as 54.4% earlier in the day before losing some market share to altcoins.

Notably, Bitcoin’s dominance is almost three times that of Ethereum (ETH), the second-largest crypto by market cap, which sits at around 17.4%.

The steady increase in Bitcoin dominance, starting from around 38% at the beginning of the year, comes amid its year-long rally, with the flagship cryptocurrency surging by 81% since the start of 2023.

At the time of writing, BTC is trading at around $34,100, almost flat over the past day.

However, the leading cryptocurrency is up by more than 20% over the past week and by more than 30% over the past month, according to data by CoinMarketCap.

What Led to the Bitcoin Price Surge?

There are several factors that could have contributed to the surge.

First, concerns over inflation, geopolitical risks, and the increasingly polarized U.S. government have prompted investors to seek safe-haven assets, minimizing their exposure to risk.

Bitcoin, with its decentralized nature and limited supply, has emerged as an appealing option for those seeking stability amidst uncertainty.

As reportedArthur Hayes, co-founder of crypto derivatives exchange BitMEX, has attributed the surge in the crypto market to the costs associated with hawkish U.S. foreign policy, particularly in relation to Israel’s war effort against Hamas.

In a recent blog post, the crypto veteran highlighted the open-ended commitment of U.S. President Joe Biden to support Israel’s war effort and pointed out that this, along with the escalating military budget and increased government borrowing, has fueled concerns about global wartime inflation.

“Added to Ukraine’s tab, America’s military budget is set to truly explode – especially if Hamas’ allies, such as Iran, respond by entering the fray via its proxies,” he wrote.

“This will increase future government borrowing, and the sky’s the limit when it comes to the sums of capital a war can waste.”

Additionally, the possibility of a Bitcoin exchange-traded fund (ETF) gaining regulatory approval has further bolstered confidence in the cryptocurrency.

In fact, crypto financial services platform Matrixport has predicted a major Bitcoin rally if a spot ETF hits the market.

Comparing this to the precious metals ETFs, which have a market cap of around $120 billion, assuming that 10-20% of precious metal ETF investors consider diversifying into a Bitcoin ETF as a hedge against monetary debasement and inflation, Matrixport said we could witness an inflow of $12 to $24 billion into the Bitcoin ETF.

“If Tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would rise to $42,000, representing a conservative estimate.”

More Articles

Price Analysis
Price Breakthrough Forecast: The Next XRP Rally Could Be Here Soon
Arslan Butt
Arslan Butt
2025-02-09 14:21:48
Altcoin News
Gold-Backed Altcoins Boom as Major Banks Raise Price Predictions: Which Coins to Get
Arslan Butt
Arslan Butt
2025-02-09 12:55:24
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors