UpdatesOct 24, 2023

Bitcoin's dominance is at its highest level in over 24 months

The leading digital currency has significantly increased its share in the cryptocurrency sector.

The dominance of the oldest cryptocurrency, Bitcoin, on the digital currency market has reached a level that has not been seen for about 2 years. According to the latest data from the dashboard of The Block platform, Bitcoin's share in the broadly understood cryptocurrency market has increased to over 49%. It is worth knowing that the last time it was seen at this level was in April 2021. This is therefore a significant change, considering that at around the beginning of 2023 the dominance of the largest digital currency was around 38%. But what led to this impressive growth?

BTC dominance at its highest in over 24 months

Rebecca Stevens from The Block Research recently noted that Bitcoin is performing very well in the difficult market conditions we are currently seeing. Investors in the digital currency sector continue to grapple with inflation issues, but also geopolitical risks and the growing influence of the U.S. government on international financial markets. Faced with all these challenges, they are looking for safe havens to store their funds, and without any doubt, BTC is becoming an increasingly attractive investment alternative for them.

It is impossible not to notice that one of the key factors that led to a significant increase in the dominance of the oldest cryptocurrency is also the proximity of obtaining approval for Bitcoin ETFs for the spot market from the American regulator. This situation, in turn, could potentially open the door to a massive inflow of capital from institutional investors.

Moreover, BTC definitely serves as an ideological “tool” to protect against the risk of uncertainty in the international financial scene. It is worth adding that in the face of the changing geopolitical environment, but also obvious economic problems, many investors see Bitcoin as a form of security against the uncertain times that await global financial markets in an unspecified future. This cryptocurrency is often called "digital gold" by investors and is an innovative and alternative form of investment.

Bitcoin as a safe haven for investors

It seems obvious that although there are many other projects based on the idea of cryptocurrencies and blockchain technology, Bitcoin remains the clear leader in terms of market capitalization and recognition among international investors. Its ability to survive and maintain dominance in the crypto sector is the best proof of the strength of this digital asset.