Bitcoin dominance approaches 62% as altcoins struggle, reaching its highest level since 2021

Bitcoin’s market dominance has surged to nearly 62%, its highest level since February 2021, as altcoins struggle amid a global economic slowdown and ongoing market uncertainties. Bitcoin’s dominance is a key metric that measures the percentage of the total cryptocurrency market cap accounted for by BTC. A 62% dominance indicates that Bitcoin now commands a significant portion of the market, leaving altcoins with a relatively smaller share.

This surge in Bitcoin’s dominance is largely driven by the growing preference for Bitcoin, as altcoins have been underperforming due to various market factors, including fears of a global economic slowdown. The current market turmoil, exacerbated by geopolitical tensions such as Trump’s tariff policies affecting Mexico, Canada, and China, has led to a broad market downturn, which has particularly impacted altcoins.

One notable development is Bitcoin’s ‘Kimchi Premium,’ which measures the price gap between Bitcoin in South Korea and global markets. Currently, the Kimchi Premium stands at 12%, the highest it has been in three years. This indicates a strong demand for Bitcoin in South Korea, even as global market conditions remain uncertain. South Korean traders are willing to pay a premium for Bitcoin, reflecting local enthusiasm and interest in the cryptocurrency despite broader market challenges.

Another important point for traders to focus on is the CME Gap at $102,436. CME Gaps occur when Bitcoin’s price moves significantly while the CME futures market is closed over the weekend. Historically, Bitcoin tends to fill these gaps over the weekend, making this price level a critical area of interest for traders looking for potential price reversals or corrections. The CME Gap is seen as a key level for Bitcoin’s price movement, with many traders keeping a close eye on it as they anticipate possible short-term corrections or upward movements.

While Bitcoin’s dominance continues to grow, many analysts and traders are predicting an upcoming altcoin season by February 2025. Historically, the cryptocurrency market has experienced cycles where Bitcoin’s dominance rises before shifting toward altcoins, leading to a period of growth for alternative cryptocurrencies. With Bitcoin currently holding a dominant position, there is speculation that, in the next year, altcoins may experience a resurgence as part of the typical market cycle.

In summary, Bitcoin’s dominance near 62% highlights its stronghold in the market as altcoins struggle. Traders are focusing on critical levels like the CME Gap and the Kimchi Premium as indicators for potential market reversals. While Bitcoin remains dominant for now, the broader market is closely watching for signs of a possible altcoin season in the near future.