Bitcoin dominance reaches its highest level in four years: Details
Bitcoin's dominance in the market surpassed 62%, the highest level since March 2021, despite a price correction of 29%.
Despite a slight increase on February 3, the upward trend has recently appeared more sustainable.
Since December, Bitcoin's dominance share has gradually risen from 55%, which has shattered hopes for an altcoin season.
The platform "Matrixport" indicated that the increase in dominance is a sign of declining investor interest in altcoins in favor of Bitcoin, which continues to outperform despite the recent decline.
Analysts believe that reaching 70% dominance could represent the peak of the current cycle, while most altcoins remain below 50% of their previous highs.
Ethereum was the most affected, as its market share dropped to 8.5%, the lowest level in five years, and the price of the coin fell below $1,800, with continued weakness against Bitcoin.
Solana, which heavily relies on meme coins, lost 60% of its value over two months, while its revenues dropped by 90%.
As for Cardano and Dogecoin, they are still down 76% from their peaks, while coins like LINK, XLM, AVAX, SHIB, BCH, LTC, and DOT have suffered losses exceeding 70% from their previous highs.