Bitcoin Dominance Reaches All-Time High Amid Market Sell-Off

Bitcoin’s market cap dominance has surged to 54.5%, reaching its highest level since July 2021, according to data from TradingView.

Coin dominance is defined as the ratio of a cryptocurrency’s market cap to the total market cap of the top 125 cryptocurrencies. This is calculated by dividing the individual coin’s market cap by the overall market cap of these assets and multiplying the result by 100.

The increase in Bitcoin’s dominance, now at a three-year peak, could signal the onset of a potential altcoin bull run.

Co-founders of Glassnode support this perspective, highlighting a risk-on market environment, suggesting that investors are favoring riskier assets with the potential for higher returns.

Additionally, analysts noted a 2% decline in the tech-heavy index, in contrast to the iShares ETF, which focuses on small-cap stocks and saw an increase of over 3%. This shift indicates a growing appetite for riskier investments among traders.