According to the Binance Research report on the state of the cryptocurrency market in April, Bitcoin dominance reached a four-year high of 63%.
Analysts believe that the 'growing popularity of BTC as a strategic reserve and digital gold has increased its appeal to investors.'
Periods when Bitcoin dominance decreased often coincided with larger bull markets, the last of which was at the end of 2024. However, the rise in April suggests that the attitude towards BTC is changing as the asset becomes increasingly popular.
One of the trends that coincided with the rise of Bitcoin was a sharp increase in the money supply. For G4 countries, it increased by a record $93 trillion. Such an increase in the indicator in the USA, Japan, China, and Europe positively correlates with the price of Bitcoin, noted Binance Research.
In addition to the potential decoupling of Bitcoin from cryptocurrency markets, Binance Research specialists also noted a new trend in centralized finance (CeFi).
In the last two months, the volume of funds raised by CeFi companies has sharply increased. Analysts believe they have become more attractive to investors due to changes in cryptocurrency legislation in the USA.
