Key Points
- Bitcoin’s dominance in the crypto market has reached a three-year high, following a mild recovery from a recent selloff.
- The top 20 cryptocurrencies showed Bitcoin had one of the strongest recoveries, despite still losing value.
Bitcoin’s dominance over all other cryptocurrencies has reached its highest point in three years. This follows a slight recovery from a sharp selloff, triggered by news of a potential Iranian attack against Israel.
The crypto market index has bounced back approximately 6% from its lowest point during the selloff. The selloff was a rapid response to the news of the potential attack, which Israel claims to have successfully deterred.
Bitcoin’s Market Dominance
Post-recovery, data shows that Bitcoin now holds close to 53% of the crypto market. This is the highest it has been since early April 2021 and surpasses the combined value of all other cryptocurrencies.
A review of the one-day performance of the top 20 cryptocurrencies by market cap reveals that Bitcoin experienced one of the most robust recoveries from the selloff. However, it, like nearly every other token in the top 20, still depreciated in value.
Bitcoin’s Appeal as an Inflation Hedge
The appeal of Bitcoin as a hedge against inflation has been on the rise. This is due to its upcoming halving event and the uncertainty surrounding macroeconomic headwinds.
