Bitcoin’s (BTC) dominance in the cryptocurrency market is back on the rise, hitting 57% as the asset reached an all-time high of $104,000 on December 5. This rebound comes after a drop to 54.7% the day before, driven by Bitcoin’s explosive move into six-figure territory. Meanwhile, altcoins, which previously stole the spotlight, have been unable to match Bitcoin’s (BTC) momentum, leaving calls for altseason subdued.
Why is Bitcoin reclaiming its market dominance despite recent altcoin rallies?
“Almost like BTC was jealous that altcoins were getting all the attention and wanted to remind everyone it’s still king,” said analyst Income Sharks.
Bitcoin (BTC) dominance—representing BTC’s share of the total crypto market value—has surged 4.4% in just 24 hours, marking a strong recovery from its recent dip. The asset’s dominance hit a three-and-a-half-year high of 61.8% on November 21, but slid to 54.7% by December 4 as altcoins like BNB, TRX, and XRP experienced impressive gains.
BTC’s breakout to $104,000 reversed this trend, reminding investors of Bitcoin’s unmatched market influence. The Bitcoin Fear & Greed Index reflects heightened sentiment, climbing to 84, categorized as “extreme greed,” as social interest in Bitcoin (BTC) surged. Google Trends data revealed December 5 saw the week’s highest spike in Bitcoin searches.
Bitcoin’s resurgence triggered significant liquidations, with $132 million in short positions wiped out over four hours, according to CoinGlass. Analysts suggest this move could dampen altcoin activity in the short term, though historical patterns indicate altcoins may rebound after Bitcoin consolidates.
Industry leaders celebrated Bitcoin’s (BTC) $100K milestone, with Coinbase CEO Brian Armstrong highlighting its remarkable growth. “If you invested $100 in Bitcoin (BTC) when Coinbase launched in 2012, it would now be worth $1.5 million,” Armstrong noted, calling Bitcoin the best-performing asset of the past 12 years.
“Bitcoin’s $100K milestone signals growing recognition of its role as a dominant financial asset,” Armstrong added.
Bitcoin’s (BTC) dominance surge underscores its pivotal role in the crypto market as it surpasses the $100K barrier. As altcoins take a backseat, investors are watching Bitcoin’s next moves closely.
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