Bitcoin dominance hits 62% as crypto market sinks on U.S. tariff war
Bitcoin dominance surges to 4-year high
As a result of the crypto market crash triggered by the U.S. tariff war with major trading partners, Bitcoin's dominance has risen significantly.
According to TradingView data, on February 3, Bitcoin's share of the total cryptocurrency market capitalization reached nearly 62%, marking its highest level since February 2021.
Bitcoin’s market dominance since 2021. Source: Trading View
In February 2021, Tesla announced a $1.5 billion investment in BTC and committed to accepting it as a payment method, pushing Bitcoin's price above $44,000.This momentum persisted throughout the year, driven by increasing adoption among businesses and institutions, ultimately propelling Bitcoin’s price above $68,000 in November 2021.
Global uncertainty poses another challenge for the crypto market
The current downturn is fueled by fears of a global economic slowdown due to Trump's tariff policies and the retaliatory measures expected from China, Canada, and Mexico.As Bitcoin's rising dominance indicates, the recent market crash has had a greater impact on the broader altcoin market than on the leading cryptocurrency.
Meanwhile, well-known crypto YouTuber Crypto Rover has pointed out a CME Gap at $102,436, which emerged over the weekend between Friday’s market close and Monday’s opening. Such gaps typically get filled quickly, which could further strengthen Bitcoin's market dominance.
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On the other hand, many crypto analysts are already predicting the arrival of an altcoin season in February.
As we wrote, Bitcoin saw a dramatic peak this week, reaching a 6-day high of $106,300 before pulling back to close at $104,650 on Thursday.
