Bitcoin's dominance has reached a two-year high, reaching 48.42% on June 13, 2023. This means that Bitcoin now accounts for 48.42% of the total market capitalization of all cryptocurrencies. The last time Bitcoin's dominance was this high was in May 2021.
There are a few reasons why Bitcoin's dominance is increasing Bitcoin has been outperforming other cryptocurrencies in recent months. Bitcoin is up more than 80% year to date, while the broader crypto market is up around 50%. This outperformance has prompted investors to allocate more capital to Bitcoin.
The global economic environment is becoming more uncertain. Inflation is rising and central banks are raising interest rates. This uncertainty is leading investors to seek safe haven assets, such as Bitcoin.