Bitcoin’s Dominance Index Hits Highest Level Since 2021
In early 2023, Bitcoin dominated the crypto market with a share of 38%. However, by October, BTC’s dominance had increased to 50%, thanks to a shift in capital towards the largest digital currency.
On October 25, BTC dominance reached 53%, the highest since November 2021, according to CoinMarketCap. Meanwhile, Ether holds a share of around 18%, followed by Tether at 7.5%.
The total market capitalization of the digital currency market has also grown to $1.28 trillion.
Analysts at Block Research attribute this increase to Bitcoin’s rising dominance, which has been steadily increasing since the beginning of 2023, starting at 38% in January and reaching almost 49% by the end of October.
This can be attributed to Bitcoin’s price increase of more than 80% in the same period.
Matrixport predicts that capital inflows into Bitcoin will continue to increase in the coming months, with BTC expected to reach $45,000 by the end of 2023.
If the SEC approves spot Bitcoin ETFs by mid-January, the digital currency could even surpass $56,000.
