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Bitcoin’s market dominance has surged to 67%, its highest since the 2021 cycle, signaling investor preference for the cryptocurrency amidst a market with few standout innovations. 

This latest analysis, reported by NYDIG, highlights Bitcoin’s continued attraction as a “digital gold” asset, particularly among traditional investors participating through ETFs. The report noted that Bitcoin’s role as a store of value contrasts with Ethereum’s “digital oil” positioning, which has seen reduced interest from traditional market entrants.

NYDIG’s report also emphasized that Bitcoin's dominance tends to peak during market corrections, as Bitcoin historically loses share to altcoins in speculative cycles but reclaims it when altcoins drop more significantly in value. Notably, Bitcoin’s dominance now exceeds the 2021 low of 41.7% but remains below the cycle peak of 74.5%.

In terms of price action, Bitcoin briefly approached a new all-time high last week, reaching $73,625—just shy of the March 2021 high of $73,836. 

Bitcoin closed the week up 2.5%, supported by what the report described as “renewed enthusiasm for a Trump presidency.” This political sentiment, boosted by Elon Musk’s endorsement, also drove the price of Dogecoin, a popular memecoin, higher.

As the 2024 US presidential election approaches, NYDIG cautioned that the final result could remain unclear for days due to tight polling margins. 

With the cryptocurrency market enjoying a historically strong October — Bitcoin is up 10.2% this month — the report anticipates continued price movements tied to election results and ongoing macroeconomic conditions in the US, which are unlikely to change significantly regardless of the outcome.

Bitcoin’s price trajectory over the remaining two months of 2024 will likely be influenced by the election outcome. 

According to the data from CoinMarketCap, Bitcoin is currently priced at $69,009/37 after experiencing a 2.04% uptick in the last seven days.