Bitcoin Dominance Hits 8-Year High Amid Steady Bull Run

Fidelity Digital Assets has released a research note highlighting the potential for a stealth Bitcoin bull run, despite the apparent lull in price action. The firm's senior analyst, Daniel Gray, argues that the current cycle may be unfolding more cautiously than previous ones, signaling a maturation of the market. Gray notes that while past halving cycles saw triple- and even quadruple-digit percentage gains by this stage, the current cycle has seen a softer trajectory.

Gray points out that Bitcoin's market dominance, excluding stablecoins, has risen to just over 72.4% as of May 11, a new eight-year high. This indicates that Bitcoin is maintaining its position as the dominant cryptocurrency, despite the rise of other assets like Ether and Solana. On-chain security metrics also support this view, with Bitcoin's daily hash rate rising above one zetta hash per second twice in April, reflecting continued investment in mining infrastructure.

Spot-market behavior has begun to echo these fundamentals, with Bitcoin printing a record intraday high of $109,486 on May 21 before extending above $111,000 on so-called Pizza Day. This move has been underwritten by renewed demand from US spot ETFs, which drew $934.8 million of net subscriptions on May 22—the heaviest single-day haul in almost four weeks. Derivatives activity mirrors this trend, with aggregate futures open interest reaching a record $80 billion on May 23, up roughly 30% since the start of the month.

Gray cautions that investors should focus less on headline returns and more on the architecture taking shape beneath them. He argues that although returns have been more measured compared to previous cycles, structural metrics suggest a strengthening foundation. Overall, it appears Bitcoin is potentially maturing—something investors may find more notable than short-term price movement.

Gray's closing assessment is blunt: “One year post-halving, Bitcoin’s price performance may seem muted, but its fundamentals appear stronger than ever … this may be a cycle that redefines Bitcoin’s role in a modern portfolio.” In other words, Fidelity’s message for would-be spectators is as clear as its headline: do not blink.