Bitcoin has reasserted its dominance over the cryptocurrency markets, with its market share rising above 49% this week for the first time since April 2021.
According to data from The Block, bitcoin’s share of the total crypto market capitalization has steadily climbed this year, starting in 2023 at around 38% before surging to 48.85% on October 21st.
Bitcoin prices up by 71% for the year
While the overall crypto market has declined in value, BTC prices are still up 71% for the year.
“Bitcoin is holding strong in current market conditions and has actually been performing well for much of this week,” said Rebecca Stevens of The Block Research.
Many investors appear to be minimizing risk by piling into bitcoin as global uncertainty intensifies, according to Stevens. Surging inflation, geopolitical tensions, and political strife continue to rattle traditional markets.
With its brand power and narrative as “digital gold,” bitcoin is seen as a hedge against the turmoil. Some believe it could soon get approval for a spot ETF in the U.S. This could further cement its status as crypto’s gold standard.
Whether BTC can maintain its newly elevated long-term status remains to be seen. But for now, the crypto king has reclaimed its throne after a multi-year absence.