Bitcoin Dominance Surges to 62%, Altcoins Struggle; Traders Eye $102K CME Gap

Bitcoin's dominance has surged to nearly 62%, its highest level since February 2021, as altcoins struggle to gain traction. This significant increase in Bitcoin's market share has traders closely monitoring its price movements, particularly around the $102,000 CME Gap, a crucial level for potential reversals.

Bitcoin's market dominance, which measures the share of the total cryptocurrency market cap accounted for by Bitcoin, has climbed to nearly 62%. This indicates that Bitcoin makes up the bulk of the market, leaving altcoins with a smaller share. The last time Bitcoin's dominance reached this level was in February 2021, when Tesla announced a $1.5 billion investment in BTC and a commitment to accept it for payments, causing the price to surge above $44,000.

Bitcoin's price momentum continued throughout 2021, driven by growing adoption among businesses and organizations. This ultimately pushed BTC's price past $68,000 in November 2021. However, the recent market downturn, explained mainly by fear of a global economic slowdown and anxiety stemming from Trump's tariff policies against Mexico, Canada, and China, has affected the broader crypto market, including altcoins.

The 'Kimchi Premium,' the price gap between BTC in South Korea versus global markets, now stands at 12%, the highest in three years. This highlights the strong demand for Bitcoin in South Korea despite market turbulence. Traders are now focusing on the CME Gap at $102,436, a key level that could indicate potential price reversals or corrections, as BTC tends to fill these gaps over the weekend.

As Bitcoin's dominance strengthens, many predict an upcoming altcoin season by February 2025, similar to previous market cycles. Traders are eagerly awaiting this potential shift in the market dynamics, as it could present new opportunities for altcoin investors.