Cryptocurrency Bitcoin's Influence Surges to Four-Year Peak, with Price Soaring Above $97,000
Slicing through the Digital Gold Rush: Bitcoin's Iron Grip on the Crypto Market
Waves of Green Cresting, bitcoin reaches an astounding 64.89% dominance in the crypto realm today, a peak not seen since January 2021, as the price of this Digital Gold surged past $97,000 this morning.
This whopping rise in Bitcoin's dominance scaling from around 57.90% at the start of the year, as per TradingView data, reveals the distinct advantage it holds over its rivals. The wave of optimism post-Trump's victory had sent altcoin prices soaring to new heights in early December, yet this enthusiasm soon subsided into fear and confusion when the Trump administration started imposing - and escalating - tariffs in February and March.
These tariffs not only dampened the spirits of altcoin fans but also affected Bitcoin. However, recent exemptions and compromises from the Trump administration have proven beneficial for the OG cryptocurrency, sans a full-scale recovery for many significant altcoins.
Bitcoin's Friday surge to $97,000 leaves it a mere 10.9% below its all-time high of $108,786 reached in January, while sinưglers like Ethereum, Solana, and Dogecoin trail behind significantly, already 54%, 43%, and 61% below their respective highs set in December or January, as per CoinGecko data.
At the time of publication, Bitcoin has retraced slightly to $96,947, marking a 0.7% increase on the day.
Bitcoin Rules the Game of First-Movers
David Morrison, a Senior Market Analyst at Trade Nation, believes that Bitcoin has outshined most alts for various reasons, including its first-mover advantage. He shared with Decrypt, "Bitcoin enjoys high acceptance relative to its peers and the more speculative coins thanks to its relatively friendly regulatory environment, which, under this Trump administration, is expected to improve further."
Investors, whether retail or institutional, find Bitcoin attractive due to its strictly limited supply, unlike many altcoins. Additionally, Bitcoin demonstrates resilience even during market turbulence, boasting a history of robust rebounds after significant pullbacks. As tariffs continue to weigh down the US and global economy, Bitcoin's relative robustness may help it maintain - and even increase - its market cap dominance.
Flight from US Treasuries Boosts Bitcoin
Bitcoin's position has also received a boost from investors fleeing US treasuries and other US-based assets. "Institutional demand can aid Bitcoin's market dominance, particularly if it surges above 70% or so," according to Morrison. "However, a few altcoins with specific use-cases may also benefit."
Things may take a U-turn if the US can manage to reach some form of satisfactory resolution or trade deal with China and the rest of the world. rumblings suggest that the Trump administration could be open to negotiations, with Beijing currently assessing an offer for trade talks.
Should the broader macroeconomic picture improve, the overall crypto market could become more bullish, eventually paving the way for a reduction in Bitcoin's dominance. "Rising risk appetite tends to drive investors to explore beyond Bitcoin," Morrison stated. "Daring coins may thus grab the potential for impressive percentage gains."
Insight 1: Bitcoin's lead emerges from its highest market capitalization and liquidity compared to other cryptocurrencies, increased investor sentiment due to its safe-haven status, institutional accumulation, and historical significance as the first cryptocurrency.
Insight 2: Comparatively, Bitcoin's dominance stands in stark contrast to Ethereum, Solana, and Dogecoin, which possess smaller market capitalizations and liquidity.
Insight 3: As of May 2025, Bitcoin's dominance sits at around 54.3%, maintaining a strong position despite market fluctuations.
Insight 4: Experts speculate that Bitcoin's dominance might continue growing due to factors like institutional accumulation and global interest, though other altcoins may gain market share if they succeed in expanding their use-cases and increasing adoption.
- Despite the rise of other cryptocurrencies such as Ethereum, Solana, and Dogecoin, Bitcoin maintains a significant lead due to its highest market capitalization and liquidity.
- Investors, including institutions, are attracted to Bitcoin due to its safe-haven status, strictly limited supply, and resilience during market turbulence.
- Ethereum, Solana, and Dogecoin lag behind Bitcoin significantly, with current prices 54%, 43%, and 61% below their respective highs, according to CoinGecko data.
- Bitcoin's dominance in the crypto market has grown, reaching 54.3% as of May 2025, thanks to factors like institutional accumulation and global interest.
- Other altcoins, like Ethereum, Solana, and Dogecoin, could potentially challenge Bitcoin's dominance if they succeed in expanding their use-cases and increasing adoption.
- Bitcoin's position in the crypto market could see a shift if there's a significant improvement in the broader macroeconomic picture, causing investors to explore beyond Bitcoin and potentially driving up the prices of other altcoins.
