Bitcoin dominance has reached 54% – the highest BTC in 2.5 years on halving
Bitcoin (BTC) market dominance has reached 54%, which is the highest in the last 30 months, indicating that the top cryptocurrency is strengthening ahead of the April 2024 halving event.
A Bitcoin halving is an event in which the mining reward per block is halved, thereby reducing the supply of the asset while demand is growing, resulting in significant price volatility. Bitcoin halving occurs every four years, and the next halving in 2024 will reduce the BTC mining reward from the current 6.25 BTC to 3.125 BTC. Since the total supply of Bitcoin is fixed at 21 million, the halving of BTC mining rewards will create a supply-demand gap that will reduce the flow of new BTC into the market.
Bitcoin market dominance is a measure of the crypto asset's market capitalization relative to the overall digital asset market and highlights the strength of the asset. A market dominance above 50% is considered highly overvalued and represents the highest point since the previous bull run in April.
Bitcoin's market dominance revival began in early October, when it fell below 49 percent to this new two-and-a-half-year high. October is historically considered a moon month leading to the nickname “Aptober”. This double-digit percentage increase in Bitcoin over the past few weeks helped BTC rise below $27,000 in early October, marking an annual high of $35,000.
Uptober was great, but the party might not be over yet.
November is #Bitcoin's best performing month in history. pic.twitter.com/kaMMt7pgZz
— Miles Deutscher (@milesdeutscher) October 25, 2023
In the year In 2017, Bitcoin maintained over 80% market dominance, followed by Ether (ETH) with a market dominance of around 10%-17%. Over the years, Bitcoin has seen its dominance in the market decline significantly during the last bull run in 2021.
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