Key Points
- Bitcoin’s market dominance reached its highest level since April 2021 despite a weekend dip.
- Bitcoin was less affected by the dip compared to other cryptocurrencies.
While traditional markets were closed over the weekend, the cryptocurrency market was active and responsive to geopolitical events. Amid news of an Iranian drone attack on Israel, cryptocurrencies across the board experienced a dip.
Bitcoin’s Performance
Bitcoin, which was trading above $70,000 on Friday, April 12, fell to just over $63,000 by the end of April 13, marking a drop of approximately 11.6%. Despite this, Bitcoin was among the least affected cryptocurrencies. Coinglass data shows that out of the $757 million worth of long liquidations on centralized exchanges on Saturday, only $261 million were Bitcoin positions.
While most cryptocurrencies are considered high-risk assets, Bitcoin is often seen as the least risky due to its large market capitalization and history of institutional adoption. For instance, Dogecoin, a more speculative asset, plummeted almost 30% from its Friday high to its Saturday low.
Bitcoin’s Market Dominance
Despite the dip, Bitcoin’s performance remained relatively strong. The cryptocurrency’s market dominance, or its market cap compared to the total market cap of all cryptocurrencies, rose to 52.86% on Sunday, the highest level since April 2021. This dominance had dropped to as low as 43% in February as altcoins rallied, pushing Bitcoin’s dominance to its lowest since March 2023. However, this trend reversed as Bitcoin weathered the weekend dip better than other cryptocurrencies, allowing it to reclaim a significant market share.
In theory, Bitcoin, often referred to as “digital gold” and considered a “safe haven” not tied to any specific government or country, could have surged in light of the Middle East conflict. However, with traditional markets closed, Bitcoin and other cryptocurrencies bore the brunt of the impact.
Even though Bitcoin took a hit, it still emerged as a top performer, reinforcing its position in the cryptocurrency market.