Bitcoin's market dominance has surged past 65%, reaching its highest level since January 2021 .
This milestone reflects a significant shift in investor sentiment, with capital flowing from altcoins back into Bitcoin . Factors contributing to this trend include the approval of Bitcoin ETFs 15 months ago, which facilitated institutional investment , and macroeconomic uncertainties prompting investors to seek perceived safer assets .
As Bitcoin's dominance grows, altcoins have seen reduced liquidity, indicating a cautious stance from investors towards alternative cryptocurrencies . Analysts suggest that if Bitcoin's dominance approaches 70%, it could trigger a rotation back into altcoins, potentially revitalizing that segment of the market .
Currently, Bitcoin is trading around $96,919, with recent gains attributed to optimism over U.S.-China trade negotiations and supportive regulatory developments . The combination of institutional adoption, favorable policies, and market dynamics continues to bolster Bitcoin's position as a leading digital asset .