Key Points
- Bitcoin’s market dominance has reached nearly 62%, the highest level since February 2021.
- Traders are closely monitoring the $102,000 CME Gap as a crucial level for potential price reversals.
Bitcoin now accounts for almost 62% of the total cryptocurrency market, a dominance level not seen since February 2021. The struggles of altcoins have led to traders paying close attention to Bitcoin’s price movements, particularly the $102,000 CME Gap.
Bitcoin’s Market Dominance
On February 3, Bitcoin’s (BTC) market dominance rose to nearly 62%. This measure of Bitcoin’s share of the total cryptocurrency market cap indicates that Bitcoin constitutes the majority of the market, with altcoins making up the remainder.
In February 2021, Tesla announced a $1.5 billion investment in BTC and pledged to accept it for payments. This announcement led to a surge in Bitcoin’s price, pushing it above $44,000. This upward trend continued throughout the year, driven by increasing adoption among businesses and organizations, and ultimately resulted in Bitcoin’s price surpassing $68,000 in November 2021.
The CME Gap and Market Turbulence
The recent market downturn, largely attributed to fears of a global economic slowdown and anxiety over Trump’s tariff policies against Mexico, Canada, and China, has impacted the larger altcoin market. Despite this, Bitcoin’s ‘Kimchi Premium,’ the price difference between Bitcoin in South Korea and global markets, currently stands at 12%. This is the highest it’s been in three years, highlighting the strong demand for Bitcoin in South Korea amidst market turbulence.
For traders, the CME Gap at $102,436 is a key level to watch, according to CryptoRover, a prominent figure in the crypto space. CME Gaps occur when Bitcoin’s price makes a significant move while the CME futures market is closed. Historically, Bitcoin tends to fill these gaps over the weekend, making them a critical area of interest for traders looking for price reversals or corrections.
As Bitcoin’s dominance continues to strengthen, many are predicting an upcoming altcoin season by February 2025, similar to previous market cycles.