bitcoin's dominance within the cryptocurrency market has reached a three-year high, indicating strong demand for the US spot bitcoin ETF holding the largest digital asset and a challenging period for smaller chips.
bitcoin accounted for nearly 55% of the $2.4 trillion digital asset market at the end of last week, a level not seen since April 2021. On Saturday, in particular, btc's dominance jumped to 57% when it touched briefly the $67,000 mark.
The next largest tokens by market share include ethereum (eth), Tether's USDT stablecoin, Binance Exchange's native Binance Coin (BNB) token, and Solana (SOL).
btc surge fueled by successful US bitcoin ETF launches
bitcoin–btc-share-of-crypto-market-highest-since-2021-partly-on-etfs” target=”_blank” rel=”nofollow”>According According to Bloomberg, the recent success of newly approved spot bitcoin ETFs in the US from prominent issuers such as BlackRock and Fidelity Investments has played a major role in bitcoin's rise.
These ETFs have raised approximately $56 billion in assets, making their debut one of the most successful in the history of the fund category.
Inflows into these ETFs drove btc to its current all-time high (ATH) of $73,798 in mid-March, a clear resistance level for the market's largest cryptocurrency, as evidenced by its inability to consolidate above the $70,000 level. dollars after this achievement. .
Although btc is down about 6% since then, smaller digital assets like Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have seen more significant drops of nearly 30% over the past month.
This drop coincided with lower expectations of More flexible US monetary policy financial environments, which often fuels speculative profits.
Hong Kong-Listed ETFs Boost bitcoin and ethereum
Institutional investors' allocations to the US bitcoin ETF have greatly influenced bitcoin's performance relative to the rest of the market. Benjamin Celermajer, head of digital asset investment at Magnet Capital, noted that strong institutional demand is a key factor.
On Monday, bitcoin and ethereum, the second-largest cryptocurrency, saw notable price jumps following signs that asset managers are preparing to launch Hong Kong-listed ETFs on both tabs. bitcoin rose 4.3% to $66,575, while eth jumped 6.2% to $3,260.
These rallies had a positive impact on the broader cryptocurrency market, boosting other notable tokens like Polygon (MATIC), Cardano (ADA), the dog-themed meme coin Dogecoin (DOGE), and Solana, which is now the top 5 market of cryptocurrencies. winner, more than 8% on Monday.
Interestingly, the Bloomberg Galaxy crypto Index, which measures the performance of the largest digital assets traded in US dollars, has more than tripled since the beginning of last year, marking a significant rebound from the bear market experienced in 2022.
Finally, investors and traders eagerly anticipate the next bitcoin Halvingevent that will halve the new supply of the token, expected around April 20.
Previous halving events have acted as a tailwind for prices, although there are growing doubts over whether history will repeat itself given btc's recent all-time high achievement.
btc has successfully maintained its position above the $66,000 threshold and has consolidated in this range. However, it is important to note that the losses have accumulated over longer periods.
Over the last fourteen and thirty trading days, the cryptocurrency has seen significant drops of over 21% and 24% respectively.
Featured image from Shutterstock, chart from TradingView.com
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