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Bitcoin’s market share reached 54%, its highest level in 2.5 years.

Bitcoin’s market dominance is an indicator of the market capitalization of a crypto asset relative to the overall digital asset market and highlights the strength of the asset. A market dominance of over 50% is considered very bullish and represents the highest point since the last bull run in April.

Bitcoin’s market dominance has reached 54%, its highest level in 30 months, indicating that the major cryptocurrency is strengthening just ahead of the halving event scheduled for April 2024. Recall that a Bitcoin halving is an event in which the reward to miners for a block is halved, which reduces the supply of the asset against the backdrop of growing demand and leads to bullish price momentum. Bitcoin halvings occur every four years, and the next halving in 2024 will reduce the BTC mining reward from the current 6.25 BTC to 3.125 BTC. With the total supply of Bitcoin fixed at 21 million, the halving of BTC mining rewards creates a gap between supply and demand that reduces the flow of new BTC into the market.

Bitcoin’s dominance in the market began to recover in early October, when it climbed from below 49% to reach a new high in two and a half years. October has historically been considered a bullish month for cryptocurrencies. This is why it is sometimes called “Aptober”. This trend has been evident from Bitcoin’s double-digit percentage gains over the past few weeks, which has helped BTC rise from just below $27,000 in early October to a new yearly high of $35,000. To recap, in 2017, Bitcoin maintained a market dominance of over 80%, followed by Ethereum with almost 10-17% market share. Over the years, Bitcoin has seen a sharp decline in its market dominance due to the rise of cryptocurrencies and the rise of several new tokens during the latest bull rally in 2021.

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