Bitcoin’s market dominance—its share of the total cryptocurrency market capitalization—soared to 52.92% over the weekend, up from below 50% at the end of May. This spike marks its highest dominance since April 2021.

As the largest crypto asset by market cap, Bitcoin’s dominance has remained relatively stable over the past year, fluctuating between 44% and 53%. This stability was supported by excitement around spot ETF approvals since last summer, which bolstered Bitcoin relative to other cryptocurrencies.

In April, Bitcoin's dominance hit 52.86%, driven by the approval of ETFs and increased interest due to geopolitical tensions in the Middle East. Although Bitcoin maintained a strong position, its dominance started to wane as other assets, like memecoins and Ethereum, gained traction. Ethereum also enjoyed a boost following its spot ETF approvals in March.

However, Bitcoin's dominance surged again this weekend, reaching levels not seen since the start of the 2021 bull market, which significantly boosted the market caps of many crypto assets.

Despite this rise in dominance, Bitcoin has struggled in recent days, declining 5.3% over the past week following the Federal Reserve's announcement that it anticipates only one rate cut in 2024. While major cryptocurrencies managed relatively well, smaller tokens with market caps over $1 billion, such as FLOKI, STRK, IMX, and FIL, suffered double-digit losses.

Bitcoin's relative stability in the face of broader market downturns highlights its perceived lower risk compared to other cryptocurrencies, which lack the same level of regulatory approval and institutional adoption. However, Bitcoin’s dominance has started to dip again as other tokens begin to recover from the Fed news.