Bitcoin dominance surges to new multi-year high of 65.2%

Bitcoin dominance surged to yet another multi-year high on Wednesday.

According to CCASS data, the widely tracked metric, which measures Bitcoin's share of the overall cryptocurrency market cap, climbed as high as 65.2%. This apex was last seen in early 2021.

Since the start of the year, Bitcoin's dominance has risen by 13.3%. The cryptocurrency's massive outperformance is mainly attributed to Ethereum's weakness.

The flagship cryptocurrency has lost 45% against Bitcoin during this year, and it is now on track to score its third year in the red.

At the same time, the second-largest cryptocurrency is lagging behind in terms of price action. It is currently trading around $1,580, having slid by 50% from its all-time high of $3,178, which was reached in August 2021.

The cryptocurrency behemoth is only 6% from reaching 71%, the level that has proven to be strong resistance for Bitcoin over the past few years.

However, according to an anonymous cryptocurrency analyst with more than half a million followers on the X social media network, known as Rekt Capital, the closer Bitcoin dominance gets to the aforementioned resistance level, the higher the chance of "a major collapse."

This, according to the analyst, would likely benefit altcoin valuations.

Earlier this month, the analyst predicted that Bitcoin could be in its final stage of a macro uptrend. He believes that it will be followed by a "major collapse."

"We're nearing the final stage of this (7-8 year) Bitcoin bull market cycle," he stated.

"This tends to be a HYPER-bullish period for BTC, but a BEAR period for altcoins. But if Bitcoin dominance were to collapse (which it might be doing), then we could see altcoins performing better."

Bitcoin is stealing the show

The current bull run is quite different from the previous cycles, considering that it is being propped up by institutional buying. Hence, a new altcoin cycle might not arrive this time around given that retail investors so far remain on the sidelines.

BlackRock's iShares Bitcoin Trust ETF (IBIT) has now logged 16 consecutive days of positive inflows. The massively successful product is close to attracting $5 billion in fresh inflows within just a few weeks.