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Bitcoin’s dominance of the crypto sector has reached a three-year high, standing at almost 55% of the $2.4 trillion market for virtual currencies. This surge in dominance is attributed to robust demand for US exchange-traded funds holding the largest digital asset and a challenging period for smaller tokens.
Quick Facts
- Bitcoin’s dominance in the crypto market has reached a three-year high, accounting for almost 55% of the $2.4 trillion market for virtual currencies.
- The surge in dominance is partly due to robust demand for US exchange-traded funds holding the largest digital asset.
- Bitcoin’s dominance has been accompanied by a challenging period for smaller tokens, with a gauge of smaller digital assets sinking more than 30%.
Bitcoin’s dominance in the crypto market has reached a three-year high, with its share at almost 55% of the $2.4 trillion market for virtual currencies. This surge in dominance is attributed to robust demand for US exchange-traded funds holding the largest digital asset and a challenging period for smaller tokens. The next largest by that metric are Ether, stablecoin Tether, the Binance exchange’s native token BNB, and Solana.
The batch of three-month-old US spot ETFs from issuers including BlackRock Inc. and Fidelity Investments have amassed about $56 billion in assets to date, ranking as one of the most successful debuts ever for a fund category. The inflows helped propel Bitcoin to a mid-March record of $73,798. While the token has retreated roughly 6% since then, a gauge of smaller digital assets has sunk more than 30%. The drop coincided with reduced expectations for the kind of looser US monetary policy settings that can fuel speculative gains.
Allocations to the US ETFs by institutional investors have “resulted in Bitcoin performing very strongly relative to the rest of the market,” said Benjamin Celermajer, director at digital-asset investment manager Magnet Capital. Bitcoin and second-ranked Ether jumped on Monday, boosted by indications that asset managers will soon launch Hong Kong-listed ETFs for both tokens. Bitcoin was down around 1% to $63,500 as of 2:35 p.m. in New York, while Ether added about 1% to $3,094. Smaller tokens such as Polygon, Cardano were lower, along with meme-crown favorite Dogecoin.
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