Bitcoin's dominance rate is increasing in the context of the increasingly chaotic crypto market and especially when bitcoin price also reached its highest level in 9 months.

Bitcoin (BTC) dominance – the ratio of the market share of BTC price to the total value of the crypto market – has hit a nine-month high of 45.5%, according to data from the platform. TradingView charting platform.

The last time BTC.D reached over 45% was on June 25, 2022.

Bitcoin's recent price surge comes amid two weeks of turmoil in the crypto market as crypto-friendly banks like Silvergate and Signature nearly brought about a recent banking industry collapse. Bitcoin's dominance has historically increased during times of high stress because BTC is considered a less volatile asset than most other cryptocurrencies.

BTC's recent market share gains also coincide with a nearly three-day surge in bitcoin's price, which surpassed $26,000 on Tuesday for the first time since last summer following the release of consumer price index data ( CPI) for February was slightly favorable. The CPI report has fueled a spike across the crypto market.

BTC was recently trading above $24,700, down 4% over the past 24 hours but up double digits from where it stood at the weekend.

“Bitcoin dominance is often seen as a healthy influence on the crypto market because it shows that the market is not over-inflated,” FundStrat Research noted in a tweet Tuesday. Cryptocurrency traders choose to buy bitcoin over more speculative altcoins)”.

FundStrat said the spike may reflect investor interest in bitcoin “rising where traditional banks like SVB are failing.”

In December, CoinDesk contributing columnist Noelle Acheson wrote that “BTC is a crypto asset and not a stablecoin that is least volatile, and when traders and short-term investors feel confident, They tend to prefer high risk/high reward from a smaller number of assets/tokens.”

Bitcoin's dominance has also been consolidated while stablecoin volatility has grown over the past few weeks, with USDC being the world's second largest stablecoin, having lost its peg to the dollar after the collapse of Silicon Valley Bank. USDC recently regained its peg, but uncertainty about the stablecoin's path forward remains, especially as regulators have increased scrutiny of the asset.

According to data from CryptoQuant, over the past year, stablecoin supply has gradually decreased.