Bitcoin’s Dominance of Crypto Market Reaches Highest Level Since 2021 | Global News Avenue

The price of Bitcoin has been surging since election night, Set a new all-time high of over $93,000 on Wednesday It then fell back below $90,000.

While alternative crypto assets are also leaning in the same direction as Bitcoin has decided, Altcoins The world’s largest and most popular cryptocurrency has so far failed to keep pace during this bull run. In fact, the Bitcoin Dominance Index (BDI) hit a new cycle high of 61.39% on Wednesday, according to TradingView. This is the highest level since March 2021.

BDI measures the total value of the Bitcoin network as a percentage of the value of all crypto assets worldwide. This is a fairly crude way to measure things, and there are a few different specific measures that include or exclude specific types of cryptoassets. For example, it doesn’t make much sense to include StablecoinIn this type of data, there is a peg to the US dollar.

For some, the ETH/BTC trading pair is an alternative to illustrating Bitcoin’s dominance (or lack thereof) because Ethereum Considered by some as the primary alternative to Bitcoin. That said, while spot Ethereum exchange-traded funds (ETFs) have performed better than ever in terms of inflows over the past week, Ethereum has reversed nearly all of its post-U.S. Election Day gains relative to Bitcoin

Dogecoin bucks the trend

So why does this happen? In the past, Bitcoin led the crypto market until other alternatives joined in and eventually overtook the oldest crypto asset. Different dynamics may now emerge due to various technological developments surrounding Bitcoin, e.g. Layer 2 network and ordinal number. Layer 2 networks can enable many of the features found on alternative crypto networks such as Ethereum and Solanaon top of Bitcoin.

Additionally, much of the institutional interest in the current market is focused on spot Bitcoin ETFs and Bitcoin as a “digital gold“One of Donald Trump’s campaign promises was to establish a “strategic Bitcoin reserve.” Additionally, BlackRock calls Bitcoin a “unique diversification tool.”

Currently, Dogecoin is a well-known alternative cryptocurrency that bucks the current trend and is up 145% relative to Bitcoin in the past month. This outstanding performance is considered Thanks to Elon Musk’s close ties Musk has been a major supporter of meme-centric cryptocurrencies in the past following Trump’s campaign victory.