“Bitcoin’s dominant position surges to 54%, reaching its highest level in 2.5 years, as excitement and anticipation build up for the upcoming BTC halving event.”
Bitcoin’s market dominance has reached its highest point in the last 30 months, indicating the cryptocurrency’s strength leading up to the halving event scheduled for April 2024. The halving event occurs every four years and involves cutting the mining reward per block in half, reducing the supply of Bitcoin in the market. This creates a supply-demand gap and typically leads to a bullish price momentum.
Bitcoin’s market dominance is a measure of its market capitalization relative to the overall digital asset market. A dominance of over 50% is considered highly bullish and marks its highest point since the last bull run in April. The market dominance began reviving at the start of October, rising from below 49% to reach this new two-and-a-half-year high.
October has historically been considered a bullish month for cryptocurrencies, earning the nickname “Uptober.” This was evident from Bitcoin’s double-digit percentage surge over the past few weeks, which helped propel its price from just below $27,000 to a new yearly high of $35,000.
In 2017, Bitcoin maintained a market dominance of over 80%, followed by Ether with nearly 10%–17% in market dominance. However, Bitcoin has seen a decline in its market dominance in recent years due to the rise of other cryptocurrencies and the growth of new tokens during the last bull run in 2021.
Overall, Bitcoin’s increasing market dominance and its upcoming halving event point to a strengthening position for the cryptocurrency. Many in the crypto community are optimistic about Bitcoin’s future performance, especially considering November’s historical track record as Bitcoin’s best-performing month.
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