Bitcoin Dominance Hits 65.2% As Ethereum Loses 45%
1min read Bitcoin dominance has surged to a multi-year high of 65.2%, marking a 13.3% increase since the beginning of the year. This metric has reached its highest level since early 2021, driven primarily by Ethereum's weakness. Ethereum has lost 45% against Bitcoin this year and is on track for its third consecutive year in the red.
Bitcoin's dominance is now just 6% away from reaching 71%, a level that has historically acted as strong resistance. According to Rekt Capital, an anonymous cryptocurrency analyst with a significant following on social media, the closer Bitcoin dominance gets to this resistance level, the higher the likelihood of a major collapse. Such a collapse, the analyst suggests, could benefit altcoin valuations.
Earlier this month, Rekt Capital predicted that Bitcoin could be in the final stage of its macro uptrend, followed by a significant collapse. This prediction aligns with the analyst's view that the current bull run for Bitcoin is different from previous cycles. Institutional buying is propping up the cryptocurrency, and retail investors have largely remained on the sidelines. This dynamic suggests that a new altcoin cycle might not materialize this time around.
BlackRock's iShares Bitcoin Trust ETF (IBIT) has seen 16 consecutive days of positive inflows, attracting nearly $5 billion in fresh inflows within a few weeks. This institutional interest further supports the notion that Bitcoin's current bull run is driven by institutional buying rather than retail enthusiasm.
