Bitcoin Market Dominance Hits 2.5-Year High As Price Reclaims $35K

Bitcoin (BTC), the world's largest crypto asset by market capitalization, is in an uptrend this week. It reclaimed the $35,000 price level and recorded a new historic high in its market dominance, which has not been seen in over 30 months.

The king of cryptocurrency continues to showcase its resilience compared to other digital assets in the market as its dominance reached 54% following three consecutive weeks of a 0.5% increase to 52.4% as of last week.

BTC dominance gauges the relationship between the crypto asset's market capitalization and the total market capitalization of the entire digital currencies.

By far, this is the highest rate BTC's dominance has reached over the past two and a half years or since the bull market in April 2021 where it hovered within the 50%–60% range.

In other words, BTC is 50% worth more than all other cryptocurrencies combined.

For two years, the index narrowly swung between 39% and 49% before it broke out in mid-June when the price hit the $30,000 mark. It aligned with the news about BlackRock filing a spot BTC exchange-traded fund (ETF) in the United States.

"Bitcoin dominance is a great crypto trading tool that sheds more light on changing market trends. You can apply it to manage a diversified crypto portfolio or adjust your investment strategies based on trends. However, it's important to point out that Bitcoin dominance doesn't point out a definitive BTC or altcoin trend but acts as a tool that you can draw on to enable you to make informed investment decisions," CoinGecko said in its latest blog.

While Bitcoin's market dominance surged, BTC trading saw heavy volatility, with around $1 billion in open interest wiped out over the past 24 hours. Total short liquidations skyrocketed to over $216 million, the largest so far in 2023, data from CoinGlass revealed.

This week has witnessed a series of positive news for Bitcoin, particularly for the highly anticipated spot BTC ETF applications of Wall Street giants.

Earlier this week, the ticker of the BTC ETF application of BlackRock appeared on the official website of the Depository Trust & Clearing Corporation (DTCC), with industry watchers noting that the investment giant may have started seeding the product.

BlackRock, however, pacified the hype and confirmed that its application is still with the U.S. Securities and Exchange Commission (SEC).

BTC was trading in the red zone at $34,154.54 as of 5:17 a.m. ET on Friday, with a 24-hour trading volume down by 23.05% at $18 billion. It represented a 0.95% decrease in the last 24 hours and a 14.6% gain over the past seven days.

Bitcoin's total circulating supply stands at 19.53 billion BTC, with its value down by 0.90% at a $666.93 billion market cap, according to data from CoinMarketCap.