Bitcoin market dominance hits highest level of 58% since April 2021

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Bitcoin’s relative percentage of total cryptocurrency market capitalization has reached 58%, its highest level since April 2021, according to a new report from Coin Metrics.

With a staggering market capitalization of $590 billion, the world’s leading cryptocurrency has currently pushed Ethereum and smaller altcoins back. The total market capitalization of the industry sits at $1.2 trillion according to Coingecko.

This comes amid news of increased regulatory scrutiny by US regulators who recently claimed a handful of cryptocurrencies were unregulated securities, leading several to lose billions of their market capitalization.

Bitcoin has led a bullish rally over the past week, after BlackRock requested a spot Bitcoin exchange-traded fund (ETF). The Wall Street colossus sparked Bitcoin’s rise in crypto market dominance and prompted investors to buy the asset despite numerous previously denied ETF applications.

The price rally has also spread to other assets, such as Grayscales Bitcoin Trust (GBTC). The so-called GBTC rebate, which refers to the difference between the stock price and the net asset value (NAV) of the Bitcoin it holds, continues to decline, hitting a monthly low of -30%, according to YCharts .

Coin Metrics, an open-source data analytics platform for public blockchains, reported that Bitcoin dominance fell steadily during the crypto spring of 2021, dropping to an all-time low in January 2022. At the time, it accounted for 37% of the global crypto market capitalization.

The report also showed that Bitcoin’s presence in the so-called CBMI 10Coin Metrics Index for the top 10 cryptocurrencies reached its highest point in 2 years, weighing in at 65%. The metric, however, excludes stablecoins such as Tether (USDT) or USDC.

Bitcoin is up 85% year-to-date, currently trading at $30,395 according to data from Coingecko. The asset has outperformed the majority of cryptocurrencies in 2023, with the notable exceptions of Bitcoin Cash (BCH) and Lido Finance (LDO).

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