Bitcoin Flexes Its Market Dominance: Reaches Highest Level Since April 2021 Despite Weekend Dip

• Over the weekend, assets experienced a dip as traders adjusted their portfolios briefly in response to Middle East tensions.
• By the end of Saturday, it appeared that most assets had reached a relative low point.
• The provided text is a snippet from CoinNerd’s Data & Insights newsletter.

While the stock market remained inactive over the weekend in response to news of an Iranian drone attack on Israel, the crypto market swiftly reacted.

Across various assets, a downturn ensued as traders adjusted their portfolios and reduced risky positions. Bitcoin, for instance, plummeted from over $70,000 on Friday, April 12, to slightly above $63,000 by the end of April 13, marking an approximate 11.6% decline from its Friday peak to its Saturday low.

Surprisingly, Bitcoin emerged as one of the least affected cryptocurrencies. Coinglass reported over $757 million worth of long liquidations on centralized exchanges on Saturday, with only $261 million attributed to bitcoin positions.

While many cryptocurrencies are considered risky by traders, bitcoin stands out as relatively stable due to its significant market capitalization and widespread institutional adoption. Conversely, assets like Dogecoin are more speculative, with DOGE experiencing a nearly 30% decline from its Friday peak to its Saturday low.

The majority of assets appeared to reach a bottom by late Saturday and have since shown a modest recovery.

Theoretically, bitcoin had the potential to surge in such a scenario, being viewed as a “safe haven” asset not tied to any specific government or country. With gold experiencing a surge amid Middle East conflict fears, this sentiment could have extended to what is often termed “digital gold” as well.

However, with the stock market closed, bitcoin and other cryptocurrencies bore the brunt of the downturn.

Despite bitcoin experiencing a setback, it remained one of the top performers.

Bitcoin’s dominance, representing its market cap share compared to the total cryptocurrency market cap, surged to 52.86% on Sunday, marking its highest level since April 2021.

Bitcoin’s dominance had previously dipped to 43% in February as altcoins surged during a broader market rally, leading to bitcoin’s lowest dominance level since March 2023.

This trend has now reversed, with bitcoin facing less intense pressure over the weekend, enabling it to reclaim its largest market share in three years.

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