The price of Bitcoin has failed to decisively surpass the $71,000 level and has been pulled back to just under $70,000 for the time being.

However, altcoins have retraced even more on a daily basis, pushing BTC dominance to nearly 50%.

BTC dominance increases despite retracement

The leading cryptocurrency added over seven thousand dollars amid last week's FOMC meeting. However, this rally was short-lived, and the asset quickly retreated to $62,500 on Friday.

Bulls attempted to regain ground over the weekend, and the attempt saw minor success as BTC reached $66,000 before returning to $64,000. However, once Monday arrived, the landscape changed, and Bitcoin began gaining ground late in the day.

Within hours, the asset surged by several thousand dollars and reached $71,000. A day later, BTC pushed even higher and hit a multi-week high of $71,600 amidst increasing ETF inflows. Nevertheless, the cryptocurrency failed to reach its historical peak of $73,800 from March 14 and returned to just under $70,000, where it currently stands.

As a result, its market capitalization fell below $1.4 trillion. However, its dominance over altcoins has gained nearly 1% in recent days and reached 49.8% on CoinGecko.

Altcoin retracement

Given that the price of BTC is declining daily but its dominance is increasing, this spells trouble for the altcoin space. In fact, most altcoins have turned red today, with ETH leading the way.

The second-largest digital asset is down 3% and is trading at $3,550. Binance Coin, Solana, Ripple, and Cardano have all retreated between 3 and 5%.

Even more losses come from Toncoin (-9%), Avalanche (-6%), IMX (-7%), TAO (-9%), and HBAR (-6%).

The total cryptocurrency market capitalization has lost over $50 billion since yesterday's peak and is well below $2.8 trillion on CG.