Last Tuesday, Bitcoin (BTC) hit $26,400 for the first time since mid-2022. The largest digital currency’s aggressive rise was accompanied by a sharp increase in its market share.
The BTC dominance index soared to a nine-month high of 45.5%, according to TradingView data.
The last time this indicator was at about the same level was on June 25 last year.
Analysts believe that the stress that the US banking sector is experiencing has contributed to a sharp strengthening of the BTC rate, which is seen as an alternative instrument.
The crisis was provoked by the collapse of banks such as Silvergate and Signature, with which many crypto companies interacted.
A review by strategists at FundStrat Research states that in recent days, most traders have switched to bitcoin. Other digital currencies were less in demand, which is why the share of BTC in the market has increased dramatically.
Bitcoin is less volatile compared to other cryptocurrencies, which is why it becomes the most popular digital asset during periods of turbulence.
