Bitcoin Market Dominance Reaches 30-Month High Ahead of Halving Event
The market dominance of Bitcoin (BTC) has reached its highest level in the last 30 months, currently standing at 54%. This indicates that the top cryptocurrency is strengthening just before the upcoming halving event scheduled for April 2024.
What is the Bitcoin Halving?
The Bitcoin halving is an event that occurs every four years, where the mining reward per block is halved. This reduction in supply amid growing demand leads to bullish price momentum. In the next halving event in 2024, the BTC mining reward will be reduced from 6.25 BTC to 3.125 BTC. As the total supply of Bitcoin is fixed at 21 million, this halving creates a supply-demand gap that decreases the influx of new BTC into the market.
Bitcoin’s Market Dominance and Bullish Significance
Bitcoin’s market dominance represents its market capitalization relative to the overall digital asset market and serves as an indicator of its strength. A market dominance of over 50% is considered highly bullish. The current level of dominance marks its highest point since the last bull run in April.
Bitcoin’s Revival and Uptober
In October, Bitcoin’s market dominance began to revive, rising from below 49% to reach this new two-and-a-half-year high. Historically, October has been considered a bullish month for cryptocurrencies, earning it the nickname “Uptober.” Bitcoin experienced a double-digit percentage surge during this period, propelling its price from just under $27,000 at the start of October to a new yearly high of $35,000.
Uptober has been great, but the party may not be over just yet.
November is historically #Bitcoin‘s best performing month. pic.twitter.com/kaMMt7pgZz
— Miles Deutscher (@milesdeutscher) October 25, 2023
Past Market Dominance and Current Landscape
In 2017, Bitcoin held a market dominance of over 80%, with Ether (ETH) following at nearly 10%–17%. However, Bitcoin’s market dominance has declined over the years due to the emergence of numerous cryptocurrencies and the growth of new tokens during the last bull run in 2021.
Hot Take: Bitcoin’s Strength and Promising Future
The recent surge in Bitcoin’s market dominance and its bullish price momentum indicate a strengthening position for the top cryptocurrency. With the upcoming halving event in 2024, which will further decrease the supply of BTC, Bitcoin’s future appears promising. Additionally, October’s positive performance and the anticipation of November, historically Bitcoin’s best-performing month, suggest that the party may continue for Bitcoin investors.
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