Bitcoin Nears Record High as Market Dominance Surges

Bitcoin and several other cryptocurrencies have experienced notable price surges in recent weeks.

Bitcoin, in particular, has been edging closer to its all-time high, with a recent move past $68,000 bringing it within 8% of setting a new record.

Notably, the influx of investment into Bitcoin has boosted its dominance over altcoins. Current data indicates that Bitcoin’s market dominance now stands at 65% of the total crypto market cap, marking its highest level in three years.

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This prompts the question of whether an altcoin season will occur in this market cycle.

Data from IntoTheBlock shows Bitcoin’s dominance recently hit 65%, the highest during the 2021 bull run. Back then, Bitcoin captured the majority of investment flows before eventually losing some ground to Ethereum and other altcoins in mid-2021.

Bitcoin Dominance surpassed 65% for the first time since early 2021, marking a 3-year high. pic.twitter.com/b5KTxgzBa4

— IntoTheBlock (@intotheblock) October 18, 2024

The crypto market has evolved significantly since that time, and Bitcoin has gained traction with institutional investors. The recent influx of capital into Bitcoin can largely be attributed to investments from Spot Bitcoin ETFs.

According to SoSoValue, Bitcoin-based spot ETFs in the U.S. had a strong performance last week, recording consistent daily inflows and ending with a net inflow of $2.13 billion, the highest since mid-March.

While this is encouraging for Bitcoin enthusiasts, it’s not great news for those betting on Ethereum to outperform. One such investor, crypto millionaire James Fickel, has reportedly lost over $43 million due to a high-risk wager that Ethereum would surpass Bitcoin’s performance in 2024.

Kosta Gushterov