Bitcoin Dominance Breaks 65% Barrier as Price Holds Firm at $94K

The cryptocurrency has been gradually gaining market share over altcoins with bitcoin dominance now at its highest level in more than four years.

$BTC Price Steady at $94K but Market Dominance Climbs Over 65%

Bitcoin ( $BTC) now accounts for more than 65% of the entire $2.93 trillion crypto market, the highest level of bitcoin dominance since January 2021, according to data from Coinmarketcap and Tradingview. The digital asset hovered around $94K on Tuesday in what has been mostly sideways price action.

$BTC gained roughly 0.30% over 24 hours, while all the other top ten cryptocurrencies tumbled, with the exception of stablecoins. The recent surge in dominance is likely a combination of increased institutional demand and an uptick in price coupled with a slump in altcoin performance.

Conversely, the second-largest cryptocurrency, ether ( $ETH), is down roughly 43% year-over-year, according to Coinmarketcap, with the $ETH/ $BTC ratio sinking to a 5-year low. The ratio divides the price of ether with the price of bitcoin to determine how much $BTC is required to purchase one $ETH. When bitcoin outperforms $ETH, as has been the case lately, the ratio decreases.

( $ETH/ $BTC ratio / Tradingview)

While a high dominance ratio is generally good for bitcoin, some chart analysts claim that above a certain threshold, altcoins become undervalued and a shift takes place where traders begin acquiring these undervalued cryptocurrencies, triggering a bull market and potentially crashing the high $BTC dominance ratio.

“ $BTC dominance might be nearing its peak, and once it reaches the upper zone, we could start seeing altcoins gain more strength as dominance falls,” said analyst Ijaz Awan in a post on X.

Overview of Market Metrics

Bitcoin saw a modest 0.30% gain over the past 24 hours and rose to $94,562.34 at the time of reporting, according to Coinmarketcap. The cryptocurrency traded between $93,399.86 and $95,193.19 during the period, showing relatively narrow movement. While daily momentum is positive, $BTC remains down slightly by 0.60% over the past seven days, reflecting mild short-term volatility.

( $BTC price / Trading View)

Trading activity showed renewed interest, with 24-hour volume climbing 14.55% to $22.62 billion. Bitcoin’s market capitalization also rose by 0.32% to $1.87 trillion, indicating an uptick in capital inflows. As discussed above, $BTC’s dominance over the broader crypto market increased by 0.40% to 65.10%, underscoring its continued outperformance relative to altcoins.

( $BTC dominance / Trading View)

On the derivatives front, $BTC futures open interest fell by 1.05% to $62.62 billion, suggesting a pullback in leveraged trading. Coinglass data shows total liquidations reached $545,400 over the past 24 hours, with long positions accounting for the bulk at $365,370, compared to $180,030 in short liquidations.