Key Takeaways
- Bitcoin's market dominance reaches 58.77%, the highest since April 2021, as altcoins experience minimal price movement.
- The Ether/Bitcoin ratio has dropped to its lowest point since April 2021.
- Bitcoin dominance rose to above 70% at one point during the 2020-21 bull market before declining to as low as 40% in mid-2021.
Bitcoin Dominance Reaches Multi-Year High
Bitcoin's market share surged to 58.77%, the highest since April 2021.
This increase occurred as Bitcoin reached a 10-week high of $67,800, before stabilizing near $67,000 with a market cap of $1.32 trillion.
Historically, rising Bitcoin dominance has been negative for altcoins, and the current surge caused altcoins to trade mostly flat or drop in value.
Institutional interest in Bitcoin remains strong, with U.S. spot exchange-traded funds seeing $371 million in net inflows on Oct. 15, contributing to over $1.1 billion in inflows over the past three days.
Ether’s Declining Performance
The Ether to Bitcoin ratio has dropped to 0.03850, marking its lowest level since April 2021.
Ether's value relative to Bitcoin fell below 0.039 this week, continuing its underperformance since April 2021.
The broader crypto market, as measured by the CoinDesk 20 Index, grew by 9% over the same period, trailing Bitcoin's performance.
Analysts have noted that Ether’s current ratio is 25% below its June 2022 cycle low, highlighting a persistent downward trend.
Historical Context and Institutional Interest
Bitcoin’s dominance peaked above 70% during the 2020-2021 bull market before dropping to as low as 40% by mid-2021.
The collapse of crypto exchange FTX in 2022 contributed to a bottoming of Bitcoin dominance, which has steadily risen since.
