Bitcoin's Market Dominance Is at the Highest Levels in Years

Bitcoin continues to march toward all-time-highs that were only reached earlier in 2024, although the volatility that the token has experienced.

Bitcoin's market dominance has reached its highest levels in years, as the primary cryptocurrency continues to march toward all-time-highs that were only reached earlier in 2024.

However, the volatility that the token has experienced in the run-up to the U.S. Presidential election has been elevated when compared to prior periods in the year. Regardless, the fact remains that the price of bitcoin and bitcoin interest continues to move in positive directions in spite of short-term setbacks.

Bitcoin Dominance Rises To 60%

After bottoming out with the collapse of FTX in November 2022, the market share of bitcoin has continued to steadily increase since those events.

In particular, the share of total market capitalization captured by bitcoin, used to determine the dominance of bitcoin, has risen to approximately 60% as of October 2024. This marks the highest level of bitcoin dominance since April of 2022.

Following the declines in crypto prices overall in 2022, bitcoin's market share dropped to around 35% at the time. However, the market capitalization of bitcoin has increased substantially since then, while the broader crypto market has experienced more modest gains.

As a result, bitcoin's market dominance has been gradually increasing throughout 2024. This trend is likely to continue in the near term, as bitcoin remains the most popular and widely traded cryptocurrency.

However, it is important to note that bitcoin's market dominance can fluctuate over time, especially during periods of high volatility in the crypto market.

Institutions Continue To Favor Bitcoin

It is worth pointing out that the institutional inflows and interest coming into crypto have continued to be centered around bitcoin.

For example, while both bitcoin and ether have spot ETFs products at this point, the bitcoin ETFs have attracted $18.9 billion while ether ETFs have attracted a substantially lower amount.

This preference for bitcoin among institutions is likely due to several factors, including the fact that bitcoin is the most well-known and liquid cryptocurrency, and it has a longer track record of performance than other cryptoassets.

Additionally, bitcoin is seen as a more conservative investment than other cryptoassets, which may appeal to institutions that are looking for exposure to the crypto market without taking on too much risk.

As a result of these factors, bitcoin is likely to remain the preferred cryptoasset for institutions in the coming years.

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