Bitcoin's grip on the crypto market tightens as it captures a 54% market share, the highest level in 30 months. The increase is noteworthy as the crypto community sets its eyes on the next halving event.
Every four years, Bitcoin undergoes a halving event that decreases the mining reward by half. The next scheduled halving will take place in April 2024 and will lower the reward for miners from its current level of 6.25 BTC to 3.125 BTC.
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Bitcoin’s market share serves as an indicator of its influence within the broader crypto ecosystem. A dominance level above 50% is generally viewed as a bullish sentiment in the market.
October has proven to be particularly favorable for Bitcoin, with its market dominance rising from just under 49% at the beginning of the month. The month, often termed "Uptober," has historically been linked to bullish crypto activity. In line with this trend, Bitcoin's price jumped significantly, moving from just under $27,000 at the beginning of the month to an impressive new high of $35,000 recently.
While Bitcoin had a market dominance of over 80% back in 2017, the introduction and growth of other cryptocurrencies have diluted its influence. However, Bitcoin remains a key player, especially when you consider market activity during recent bull runs.
The Crypto Fear and Greed Index also highlights bullish sentiment towards cryptocurrencies. On October 25th, the index entered the "greed" zone with a score of 72, signaling a bullish market sentiment. While on October 26th, the index fell to 71, general market sentiment remained more than positive.
Bitcoin's increasing market share underlines its continued relevance in the ever-evolving crypto sector. As the 2024 halving event looms, this upward trend in dominance showcases Bitcoin's enduring role as a bellwether in the cryptocurrency landscape.
