Bitcoin, the leading cryptocurrency, is regaining its dominance in the cryptocurrency market with a surprising rise. According to the latest data, Bitcoin dominance has reached 54%, its highest level in the last 30 months. This rise is indicative of Bitcoin’s strength just ahead of the next halving event scheduled for April 2024.
The Bitcoin Halving is a key phenomenon in the history of this cryptocurrency. It occurs every four years and is characterized by the block mining reward being cut in half, decreasing the supply of Bitcoin amid growing demand.
Bitcoin’s dominance in the cryptocurrency market, currently at a solid 53.76%, according to official data from TradingView, highlights its position as the undisputed leader in the world of digital assets.
This indicator, which measures BTC’s market capitalization relative to the total cryptocurrency market, signals its robustness in a highly competitive environment.
In the case of the next halving in 2024, the mining reward will be reduced from 6.25 BTC to 3.125 BTC.
Since the total supply of BTC is limited to 21 million, this reduction in rewards creates a gap between supply and demand, often driving an increase in the price of Bitcoin.
A market dominance of over 50% is considered highly bullish, marking its highest point since the last bull run in April.
BITCOIN COUNTDOWN AND RESURGENCE
Bitcoin’s dominance revival began in October, a historically bullish month in the cryptocurrency world, which has led to it being dubbed “Uptober.”
Over the past few weeks, BTC has seen a double-digit increase in price, rising from below $27,000 to setting a new yearly high of $35,000.
This recovery is a significant milestone for Bitcoin, which during the 2017 bull run maintained more than 80% market dominance.
However, in the 2021 bull run, the dominance of the leading crypto fell to the 50%-60% range due to the emergence of numerous cryptocurrencies and tokens.
History has taught us that these events can have a significant impact on the price of the overall crypto ecosystem, and investors are keeping an eye on what the future holds for them in the exciting world of cryptocurrencies.