Bitcoin Dominance Hits 65% Amidst Fears of Impending Collapse
2min read Bitcoin's dominance in the cryptocurrency market is currently at a critical juncture, with analysts warning of an impending collapse. According to Rekt Capital, Bitcoin's dominance is in the "final countdown" before a potential decline, with its market share hitting 65%, the highest since early 2021. This significant milestone has sparked concerns among analysts and investors, who are closely monitoring the potential implications for the broader cryptocurrency ecosystem.
The anticipation surrounding Bitcoin's dominance has reached a fever pitch, with many in the crypto community speculating about the "final countdown" for its market share. The current trajectory of Bitcoin's dominance indicates a potential decline, which could have far-reaching effects on the cryptocurrency market. Analysts attribute this sluggish performance to various factors, including the recent halving event and the overall market sentiment.
A year after the fourth halving, Bitcoin's performance has been notably subdued, with gains of only 46% compared to the previous hundreds and thousands of percent increases. This atypical behavior has led analysts to question the underlying dynamics of the cryptocurrency market and the factors driving Bitcoin's price movements. The sluggish performance has raised concerns about the sustainability of Bitcoin's dominance and its ability to maintain its market share in the face of increasing competition from other cryptocurrencies.
Ask Aime: What's the outlook for Bitcoin's dominance?
The recent analysis also highlights the potential for a significant quarterly slump in Bitcoin's trajectory, particularly in March. This concerning reality has prompted investors to brace for the worst and consider alternative investment strategies. The market's anticipation of a potential collapse in Bitcoin's dominance has created a sense of uncertainty and volatility, with investors closely monitoring the situation for any signs of a shift in the market dynamics.
Despite brief weekend pressure, Bitcoin held $93,500. The largest cluster of ask liquidity now sits near $96,420. Two bullish setups have been mapped out—either a break past $98K triggering short-term liquidations, or a rebound from a key moving average. Meanwhile, the Federal Open Market Committee meets May 7, and while traders don’t expect a surprise, the language Powell uses will matter. Material Indicators said it best: Powell’s words alone “will move markets.”
Traders are already staking out levels. Michaël van de Poppe told followers that if Bitcoin dips ahead of the decision, “then the go-to zone for entries is between $91.5–92.5K.”
Bitcoin dominance just hit 65%, its highest since early 2021. But Rekt Capital says this could be the peak. He noted previous dominance tops occurred near 71%, often right before altcoins took over. Fahrer, co-founder of apollo, disagrees. He said institutional holders like blackrock and Strategy aren’t rotating into altcoins, adding, “they just hold it.”
According to Santiment, social media has flipped. In April, users were calling for prices between $10K–$69K. Now? They’re predicting $100K–$159K. “This was the ideal buy time,” Santiment wrote. With sentiment heating up and the Fed in focus, Bitcoin’s next move could be anything but quiet.
