The Block: Bitcoin’s surge puts its dominance at the highest in almost two years
Bitcoin’s massive price surge this year has put the premier cryptocurrency in a position it’s not seen in almost two years.
The cryptocurrency’s dominance, which refers to the market capitalization of bitcoin relative to the total market capitalization of all crypto assets, reached 45%. That’s the highest level since May 2021.
The ratio has climbed from 38% at the beginning of January as the price of bitcoin itself has skyrocketed 82%, according to Binance data via TradingView.
The increase is unusual as dominance typically ticks higher when other crypto prices decrease. The countercyclical move comes amid regulatory uncertainty and banking stress in the U.S. and Europe. The collapse of several U.S. banks in March led to the de-pegging of Circle’s USDC stablecoin.
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Bitcoin fund flows
Digital asset investment products saw inflows totaling $57 million last week, bringing flows back to a net inflow position year-to-date, according to CoinShares. Bitcoin represented 98% of those inflows. Volumes were low, hitting at $970 million for the week.
The Shapella upgrade is set for this week on the Ethereum network, though inflows were relatively minor at $600,000.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
