The Bitcoin dominance rate is an indication of how much influence a certain cryptocurrency has compared to the rest of the market. The Bitcoin dominance rate measures the number of Bitcoin held compared to the total cryptocurrency market capitalization. Currently, the Bitcoin dominance rate is over 49%, which is the highest it has been in two years.
This suggests that, despite altcoin prices taking a hit in recent weeks, there’s still strong interest in Bitcoin from investors. As more people continue to pour money into Bitcoin, it’s likely that this trend will continue going forward.
Furthermore, the rising Bitcoin dominance could be attributed to an increase in institutional interest in the cryptocurrency market. Institutional investors are increasingly interested in Bitcoin investments, as it is seen as a viable asset class. This could be due to the perception that Bitcoin is a secure store of value, and is less prone to major price swings than some other markets.
At the same time, the latest Bitcoin run could also be tied to the upcoming “halving” event set to occur in May 2020. As the event nears, some investors may be taking profits before the halving occurs, which could be pushing up the Bitcoin dominance rate.
With all this being said, it’s hard to say exactly what is behind the current surge in Bitcoin dominance, but it is clear that it is a positive sign for the cryptocurrency space. For now, it is important to keep an eye on Bitcoin’s performance going forward and be mindful of any shifts in the dominance rate that might be reflective of deeper market trends.