On Wednesday, Bitcoin dominance surged to yet another multi-year high of 65.2%.
The widely tracked metric has surged by 13.3% since the start of the year.
In fact, Bitcoin dominance has now reached the highest level since early 2021.
Bitcoin’s massive outperformance is mainly attributed to Ethereum’s weakness. The flagship cryptocurrency has lost 45% against Bitcoin during this year, and it is now on track to score its third year in the red.
It is only 6% from reaching 71%, the level that has proven to be strong resistance for Bitcoin over the past few years.
Rekt Capital, an anonymous cryptocurrency analyst with more than half a million followers on the X social media network, claims that the closer Bitcoin dominance gets to the aforementioned resistance level, the higher the chance of “a major collapse.”
This, according to the analyst, would likely benefit altcoin valuations.
Earlier this month, the analyst predicted that Bitcoin could be in its final stage of a macro uptrend. He believes that it will be followed by a “major collapse.”
Bitcoin is stealing the show
Bitcoin’s current bull run is quite different from the previous cycles, considering that the cryptocurrency is being propped up by institutional buying. Hence, a new altcoin cycle might not arrive this time around given that retail investors so far remain on the sidelines.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) has now logged 16 consecutive days of positive inflows. The massively successful product is close to attracting $5 billion in fresh inflows within just a few weeks.
