Bitcoin Market Dominance Hits 62%, Highest Level Since 2021

As of February 3, 2025, Bitcoin’s market dominance has climbed to nearly 62%, marking its highest level since February 2021. This surge in dominance indicates that Bitcoin now accounts for the bulk of the total cryptocurrency market capitalization, leaving altcoins with a smaller share.

Understanding Market Dominance

Bitcoin’s market dominance measures the share of total cryptocurrency market capitalization accounted for by Bitcoin. A dominance of 62% signifies that Bitcoin is currently the leading cryptocurrency, with altcoins struggling to keep pace.

Historical Context

In February 2021, Bitcoin’s price surged above $44,000 following Tesla’s announcement of a $1.5 billion investment in Bitcoin and its commitment to accept it for payments. This momentum continued throughout the year, driven by growing adoption among businesses and organizations, ultimately pushing Bitcoin’s price past $68,000 in November 2021.

Recent Market Trends

The recent drop in the cryptocurrency market can be attributed to fear of a global economic slowdown and anxiety stemming from trade policies. This market downturn has affected the altcoin market, causing their prices to decline. However, Bitcoin’s ‘Kimchi Premium,’ the price gap between Bitcoin in South Korea and global markets, now stands at 12%—the highest in three years, highlighting strong demand for Bitcoin in South Korea despite market turbulence.

The CME Gap and Bitcoin Dominance

The CME Gap at $102,436 is a key level to look out for, according to CryptoRover, a Key Opinion Leader in the crypto space. CME Gaps occur when Bitcoin’s price makes a significant move while the CME futures market is down. Historically, Bitcoin tends to fill these gaps over the weekend, becoming a critical area of interest for traders looking for price reversals or corrections.

“ALTSEASON HAS ALWAYS STARTED IN FEBRUARY!!! “

Despite Bitcoin’s strengthening dominance, many predict an upcoming altcoin season, similar to previous market cycles. Traders are closely watching Bitcoin’s price movement, particularly the CME Gap, for potential reversals.

Tips for Traders

  • Watch the CME Gap at $102,436 for potential price reversals or corrections.
  • Monitor Bitcoin’s market dominance and its impact on the altcoin market.
  • Consider the historical context of Bitcoin’s price movements and market trends.

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