On September 16, Bitcoin’s dominance reached 58%, according to Tradingview. That’s the highest since April 2021, after nearly two years of steady gains.

BTC’s dominance dropped below 40% in November 2022 after the FTX crash, sending the asset to a low of $16,000 in the ensuing severe bear market.

The cryptocurrency has since risen, sending altcoins, especially Ethereum, into decline, as its market share has dwindled.

Ethereum’s dominance has declined by 30% over the past year, falling below 14% for the first time in three and a half years this week, according to Tradingview. That has also helped BTC gain market share.

Is Bitcoin’s Dominance on the Wane?

On September 16, analysts analyzed BTC’s market share, noting that its weekly close was 57.68%, above critical support/resistance for the first time since April 2019.

“The last time such a weekly close occurred, it began a multi-month uptrend for Bitcoin’s dominance to 71%,” they noted in the report.

BTC’s dominance last exceeded 70% in early 2021, but quickly fell to 40% in the four months following that year’s altcoin season.

Other analysts were unconvinced, suggesting that the asset’s dominance had peaked and that a retreat would kick-start the altcoin season this cycle.

Cryptollica told its 30,000 social media followers that the dominance rate could drop to 35% by mid-2025.

Dira Capital founder and CIO Stephen Cook agreed, saying earlier this week that despite all the recent talk of Bitcoin dominance, “that move is probably close to being over.”

Crypto Market Outlook

The cryptocurrency market fell another 1.4% on the day, with the total market cap falling to $2.11 trillion.

Bitcoin rebounded to $58,000 during the early Asian trading session on Tuesday after falling below that level late Monday.

Ethereum is still struggling and has failed to rise above $2,300, trading at $2,289 at the time of writing.