Bitcoin’s market dominance has surged to its highest level since April 2021, according to a new report from Kaiko Research. The cryptocurrency now accounts for 54.9% of the total cryptocurrency market capitalization.
The report also highlights bitcoin’s resilience during recent market turmoil. Following a sharp sell-off triggered by a surprise interest rate hike in Japan, bitcoin’s cumulative volume delta (CVD) remained positive on U.S. exchanges, indicating a stronger buying pressure compared to altcoins. This trend further solidifies bitcoin’s reputation as a “safe haven” asset during periods of market uncertainty.
“Bitcoin’s CVD remained remarkably positive on U.S. exchanges, even amidst one of the worst crypto selloffs in recent years,” said Kaiko Research analysts. “Meanwhile, altcoins faced significant selling pressure.”
The launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. earlier this year has also contributed to bitcoin’s growing dominance. Institutional investors have been drawn to bitcoin as a more investable asset compared to altcoins, which carry higher risk premiums and are more susceptible to volatility in the current macroeconomic environment.
