Bitcoin dominance returns to 2021 high as ETFs boost

Bitcoin reigns supreme in the world of cryptocurrencies, soaring to a three-year high fueled by a surge of interest in U.S. ETFs.

According to CoinMarketCap, they make up a staggering 55% of the $2.4 trillion market. This is a level we haven’t seen since April 2021. And leading the pack is the king of all cryptocurrencies, Bitcoin (BTC). But don’t underestimate the power of its followers, including Ether (ETH), the stablecoin Tether, Binance’s BNB, and the rising star Solana (SOL).

The latest U.S. spot ETFs have taken the market by storm. With big names like BlackRock and Fidelity Investments leading the charge, these ETFs have already raked in a staggering $56 billion in assets. Such a massive influx of investment sent shockwaves through the industry, propelling BTC to an all-time high of $73,798 in the midst of March madness.

The world of cryptocurrency has been shaken as the once-promising coin has taken a 6% plunge in price. But it’s not just the big players feeling the heat – smaller digital assets have plummeted by a staggering 30%. What’s causing this chaos? The looming possibility of a tighter U.S. monetary policy, putting a damper on the wild and risky investments that once thrived.

“Allocations to the U.S. ETFs by institutional investors have resulted in Bitcoin performing very strongly relative to the rest of the market,” said Benjamin Celermajer, director at digital-asset investment manager Magnet Capital.

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Hong Kong-listed ETFs for BTC and Ether sends their values soaring. BTC skyrockets by 4.3% to a staggering $66,575 while ETH surges by 6.2% to an impressive $3,260. This surge has also breathed new life into other cryptocurrencies such as Polygon, Cardano, and Dogecoin.

The cryptocurrency market is abuzz with anticipation for the highly-anticipated halving event on April 20th. This event, which will halve the token’s supply, has historically caused a surge in prices. However, with the coin’s recent record-breaking performance, the outcome of this halving is shrouded in mystery.

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