Key Takeaways
- Bitcoin dominance hits 64.98%, the highest since January 2021.
- Institutional moves, like Metaplanet's $25M bond raise, are boosting Bitcoin's share.
- Altcoins remain in decline, with Ethereum down 54% from its high.
Bitcoin now accounts for nearly 65% of the total digital asset market, its highest share since January 2021, as investors move away from altcoins and into what they view as a safer asset.
As of early May, Bitcoin’s price is just under $97,000 with a market cap approaching $2 trillion, compared to $3 trillion for the entire digital asset market.
Institutional influence
This surge is fueled by growing institutional activity.
Japanese firm Metaplanet raised $25 million through bond sales to acquire more Bitcoin, while Prime Two announced it would abandon Ethereum in favor of a Bitcoin-only strategy.
Meanwhile, Strategy has continued to accumulate Bitcoin and now controls over 2.5% of the total supply.
Market analyst insights
David Morrison, Senior Market Analyst at Trade Nation, said:
It has high acceptance relative to its peers… and its supply is strictly limited. Investors can now see a decent history of bounce-backs following large pullbacks.
Economic factors
April’s U.S. jobs report also played a role.
With nonfarm payrolls rising 177,000—well above the expected 133,000—hopes for imminent rate cuts have dimmed, making investors wary of speculative altcoins.
Altcoins like Ethereum, Solana, and Dogecoin are down 54%, 43%, and 61% from their highs, respectively.
Future of altcoins
The question remains whether an altcoin season is near.
Some analysts point to the 65% dominance mark as a potential trigger, while others argue more macro and market signals are needed before capital shifts.
