Bitcoin has showcased a dominance growth to 65%, the highest level in over four years. This rise indicates investors are returning to Bitcoin amid macroeconomic uncertainty.
Dynamics of Bitcoin Dominance
This week, Bitcoin dominance increased to 65% for the first time in over four years. This signifies a strong capital flow into BTC as investors begin prioritizing Bitcoin amid tightening macroeconomic conditions. Previously, Bitcoin confirmed a bullish trend after breaking above 63.96%.
Current Status of Altcoins
Altcoins are still under pressure as Bitcoin’s market dominance remains high. Institutional demand continues to favor Bitcoin over smaller-cap tokens, leading to compression in altcoin performance.
Outlook and Possible Changes
As Bitcoin dominance approaches the 71.04% resistance level, traders are watching this threshold closely. Historically, such levels often precede strong altcoin cycles. A reversal in dominance could lead to a new round of investments in altcoins.
With Bitcoin's current dominance at 65%, the cryptocurrency market faces interesting dynamics that could impact altcoins. Monitoring key levels will be essential for future investments.
