Key Insights
- Bitcoin’s market dominance reached 52.7%, its highest level in three years, despite the launch of Ethereum ETFs and market-wide volatility.
- Bitcoin showed resilience by quickly rebounding to pre-ETF launch levels, while Ethereum and other altcoins demonstrated weakness.
NEW YORK (MarketsXplora) – Bitcoin’s market dominance surged to a three-year high of 52.7% this week, despite the launch of Ethereum ETFs and subsequent market volatility, according to data from crypto analytics firms.
The world’s largest cryptocurrency by market capitalization started the week on June 22 with a dominance of 48.2%, but rapidly climbed to 51.9% following the Ethereum ETF launch on Tuesday. This upward trend continued throughout the week, reaching levels not seen since April 2021.
The increase in Bitcoin’s market share came amid a broader cryptocurrency market downturn following the Ethereum ETF debut. While most digital assets experienced significant price drops, Bitcoin demonstrated resilience, quickly rebounding to pre-ETF launch levels.
“Bitcoin’s strength in the face of market-wide selling pressure is noteworthy,” said MarketsXplora cryptocurrency analyst Stephen Ethan. “It suggests a flight to quality within the crypto space, with investors favoring the more established asset.”
Ethereum, despite being the focus of recent ETF launches, showed weakness in price action. Other alternative cryptocurrencies also underperformed against Bitcoin, further contributing to its rising dominance.
Experts attribute Bitcoin’s relative strength to several factors. Unlike Ethereum, Bitcoin is not facing selling pressure from the conversion of Grayscale’s GBTC trust. Additionally, Bitcoin ETFs are more established, making them the primary beneficiary of traditional finance inflows seeking crypto exposure through regulated products.
The timing of the Bitcoin Conference, featuring 2024 U.S. presidential nominee Donald Trump as a key speaker, may have also played a role. Trump’s recent public support for Bitcoin has led to speculation about potential positive policy developments should he be elected.