Bitcoin’s dominance over the cryptocurrency market has surged to its highest level in nearly three years as altcoins weaken amid geopolitical tensions and a strengthening US dollar.
Bitcoin Dominance Nears 3-Year High Amid Altcoin Weakness
Bitcoin (BTC) remained above the $60,000 support level on Thursday and was trading around $61,100, up 1% in the past 24 hours. This came after a brief dip below $60,000 in trading the previous day.
Despite Bitcoin’s resilience, the broader crypto market struggled. Ethereum’s ether (ETH) fell 1%, while altcoins like Ripple (XRP), Solana (SOL), Avalanche (AVAX), and Render (RNDR) posted notable losses.
However, Aptos (APT), a layer-1 blockchain, was a standout performer, gaining 7% on the day. The increase came after news that Franklin Templeton was expanding its tokenized money market fund onto Aptos’ blockchain.
Analysts believe investors may have shifted profits from Sui (SUI), which has surged 110% in the past month.
Bitcoin’s performance has increased its share of the total crypto market cap, pushing Bitcoin’s dominance above 58%, a multi-year high. Meanwhile, the ETH/BTC ratio has fallen to 0.038, nearing its lowest level since mid-September.
Market participants are awaiting Friday’s U.S. employment report, which could impact risk assets such as cryptocurrencies. “A combination of expected rate cuts and labor strength could boost risk assets,” crypto hedge fund QCP Capital said.
As market volatility continues, Bitcoin’s dominance underscores its safe-haven status, while smaller cryptocurrencies remain vulnerable to external pressures.
*This is not investment advice.