Bitcoin's market dominance hits a new high since April 2021

According to data from The Block, Bitcoin's market dominance soared to 52.92% over the last weekend, hitting a new high since April 2021. This growth was mainly driven by the approval of spot ETFs, despite significant overall market volatility. Bitcoin's market dominance has remained between 44% and 53% over the past year. However, recent news that the Federal Reserve only anticipates one rate cut in 2024 led to a 5.3% drop in Bitcoin over the past week. In contrast, many small-cap tokens such as FLOKI, STRK, IMX and FIL fell by double digits in the past seven days. Nevertheless, due to its higher regulatory acceptance and institutional adoption level, Bitcoin is considered a lower-risk asset. As markets rebounded, Bitcoin's dominance has begun to decline.