Bitcoin market dominance: Following a stop on world tariff increases, investor mood improved, and crypto markets rebounded sharply in April, rising 9.9%. A new Binance Research study released on May 6 claims that Bitcoin (BTC) drove the more general market increase and reinforced its market dominance.
Market Share of Bitcoin: New High Since 2021
Though the economy is recovering generally, Bitcoin’s dominance has grown, following a trend started in 2022. With 63% of the whole crypto market valuation as of the end of April, Bitcoin stood at its highest level in over three years.
The paper links this to increased interest in Bitcoin as a strategic reserve asset and the digital gold story gathering momentum. As a hedge against economic instability, investors increasingly see Bitcoin as such, which helps drive its supremacy even higher.
As late 2024 shows, historically, Bitcoin’s dominance declines during altcoin-driven bull markets. But April’s trajectory points to a change: Bitcoin is progressively getting more ingrained in conventional finance, somewhat separating from the larger crypto sector.
Global Money Printing Drives Bitcoin’s Growth
A significant rise in the world money supply is another main element driving Bitcoin’s recent increases. Projected to increase by a startling $93 trillion, the M2 measure of the money supply among G4 nations—the United States, Japan, China, and the Eurozone—is rising.
This increase in the financial system’s liquidity helps to sustain growing asset prices. For those who invest in cryptocurrencies, it enhances their perspective of Bitcoin as a digital gold and value repository. BTC’s appeal as a hedge rises as inflation worries arise.
CeFi Notes Increasing Investor Interest
Venture capitalists are showing fresh interest in centralized finance (CeFi) platforms in a marked change. Over the previous two months, Binance Research noted that the capital raising of CeFi companies has significantly surged.
This development aligns with changing U.S. crypto laws, which are making traditional crypto companies more appealing as investment vehicles. The U.S. is still the biggest center for venture capital worldwide, so this change is projected to continue affecting the dynamics of the market.
Summary
Driven mostly by Bitcoin’s (BTC) dominance, which reached 63%—its highest level since 2021—crypto markets recovered in April with a 9.9% increase. Following a stop in global tariff increases and rising view of Bitcoin as digital gold and a hedge against economic instability, investor confidence is linked to the rebound.
The worldwide rise of money supply among G4 countries, expected to reach $93 trillion, is a main driver of BTC’s growth since it increases its attractiveness among inflation worries. Influenced by changing U.S. crypto laws, venture capital is also returning to centralized finance (CeFi) systems, therefore reflecting a change in market dynamics.
