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Bitcoin now commands nearly 62% of the total crypto market, its highest level since February 2021. As altcoins struggle, traders are closely watching $BTC’s price movement, particularly the $102,000 CME Gap—a crucial level for potential reversals.
As of Feb. 3, Bitcoin’s ($BTC) market dominance has climbed to nearly 62%, marking its highest level since February 2021. $BTC market dominance measures the share of total cryptocurrency market cap accounted for by Bitcoin. A dominance of 62% indicates that $BTC makes up the bulk of the market, leaving altcoins with the scraps.
In February 2021, Tesla announced a $1.5 billion investment in $BTC and a commitment to accept it for payments, causing the price to surge above $44,000, according to Reuters.
This momentum continued throughout the year, driven by growing adoption among businesses and organizations, ultimately pushing $BTC’s price past $68,000 in November 2021.
The recent drop is explained mainly by fear of a global economic slowdown and anxiety stemming from Trump’s tariff policies against Mexico, Canada, and China. This market downturn has affected the bigger altcoin market.
$BTC’s ‘Kimchi Premium,’ the price gap between $BTC in South Korea vs. global markets, now stands at 12%—the highest in three years. This highlights the strong demand for Bitcoin in South Korea despite market turbulence.
The CME Gap and Bitcoin dominance
MASSIVE #BITCOIN CME GAP.
— Crypto Rover (@rovercrc) February 3, 2025
Normally, these gaps tend to get filled over the course of the week… pic.twitter.com/VYXYq7Ea2S
For traders, the CME Gap at $102,436 is a key level to look out for, says CryptoRover, a Key Opinion Leader in the crypto space. CME Gaps occur when $BTC’s price makes a significant move whilst the CME futures market is down. Historically, $BTC tends to fill these gaps over the weekend, becoming a critical area of interest for traders looking for price reversals or corrections.
While $BTC’s dominance strengthens, many predict an upcoming altcoin season by February 2025, similar to previous market cycles.
ALTSEASON HAS ALWAYS STARTED IN FEBRUARY!!! pic.twitter.com/gAEbfgZ2Ye
— Mister Crypto (@misterrcrypto) February 1, 2025