On Tuesday last week, Bitcoin hit a record high of $26,400 since mid-2022. The largest cryptocurrency’s surge was followed by a noticeable rise in its market share, with the BTC dominance index reaching a nine-month peak of 45.5%, according to TradingView data.
This indicator was last at a similar level on June 25, 2020. Analysts believe that the tension in the US banking sector has contributed to a notable strengthening of the BTC rate, which is seen as a safe haven asset.
The crisis was triggered by the collapse of banks such as Silvergate and Signature, which many crypto companies had dealings with.
A report from strategists at FundStrat Research suggests that most traders have diverted their attention to bitcoin in recent days, with other digital currencies being less popular and thus causing the share of BTC in the market to sky-rocket.