Bitcoin’s dominance in the crypto market has surged to 64.60% as of January 2021, with BTC, USDT, and USDC accounting for 72% of total market capitalisation. Ether (ETH) has dropped over 50% year-to-date, worsening its ETH/BTC ratio to 0.01765. Bitcoin’s performance is diverging from U.S. equities, gaining 4% since April, whilst key technical levels to watch are the 200-Day Moving Average at $87,965 and a realised price of $91,565.
Bitcoin’s (BTC) influence in the cryptocurrency market is on the rise, accounting for 64.60% of the overall market capitalisation, a figure not reached since January 2021. This increase is bolstered by Tether (USDT) and Circle’s USD Coin (USDC), which together with BTC now constitute about 72% of the total crypto market. This trend demonstrates a consolidation at the upper echelons of digital assets as investors seek stability and security.
Ether (ETH), Bitcoin’s main competitor, has seen its value decrease more than 50% year-to-date, resulting in a low ETH/BTC ratio of 0.01765, the worst performance gap recorded since 2020. This disparity underscores Bitcoin’s strengthening position over Ethereum amidst market volatility, as investors favour Bitcoin amid the changing economic landscape.
Furthermore, Bitcoin’s performance is diverging significantly from U.S. equities; since early April, the S&P 500 has slid by 6% while BTC has gained 4%. Currently, Bitcoin is priced over $88,000, in stark contrast to Ether, which is above $1,600.
Critical technical levels essential for Bitcoin’s price trajectory include the 200-Day Moving Average at $87,965, the realised price for BTC buyers in 2025, estimated at $91,565, and the short-term holder realised price of $92,385. Historically, Bitcoin has entered a bull market phase when trading above these significant levels.
James Van Straten, a Senior Analyst at CoinDesk, offers insights into Bitcoin’s performance against macroeconomic trends. Previously a research analyst at a Swiss hedge fund, he focuses on on-chain analytics and its implications for Bitcoin within the financial system. He also advises Coinsilium and holds investments in Bitcoin and related assets.
