Bitcoin Dominance Slips as Ethereum Rallies

The cryptocurrency market rallied on Thursday morning, with Bitcoin inching towards $100,000 again.

Bitcoin (BTC) rose 2% over the past 24 hours to $96,410, while Ethereum (ETH) and Solana (SOL) gained 5% and 2%, respectively. The total crypto market capitalization climbed to $3.44 trillion.

Bitcoin briefly climbed above $97,000, sparking discussions on social media about potentially breaching the $100,000 milestone.

“BTC reclaimed the critical $95,000 level last night after the PCE price index came in as expected,” wrote a QCP Capital analyst. “ETH was the main outperformer yesterday as it rallied 11.65% to a high of 3,688.”

Bitcoin’s dominance in the crypto market, which measures BTC’s share of the total market value, has dropped from its recent high of 61.5%.

Meanwhile, the ETH-BTC ratio, which compares Ethereum’s value to Bitcoin’s, has remained strong at 0.03760 — a 17.8% increase from last week. This trend suggests a capital shift from Bitcoin to Ethereum, with analysts eyeing 0.0400 as the next key level.

“Given that ETH has lagged behind BTC and SOL in the current rally, its recent strength supports the case for it to retest its all-time high of 4,868 (+35.4%),” QCP Capital added.

BTC’s recovery coincides with renewed inflows into US spot Bitcoin exchange-traded funds (ETFs), which turned positive after two days of net outflows totaling $558 million.

On Nov. 27, U.S. spot Bitcoin ETFs collectively recorded $103 million in inflows, according to data from Farside Investors.

Leading the way was the Bitwise Bitcoin ETF with a $48 million net inflow, while BlackRock’s iShares Bitcoin Trust (IBIT) reported no flows for the first time since Nov. 15. To date, U.S. spot Bitcoin ETFs have amassed $30.3 billion in cumulative net inflows.

Key Bitcoin Metrics Indicates Growth Potential

Analysis from CryptoQuant suggests Bitcoin's November surge of 34% still has room for further growth.

The CryptoQuant Cycle Indicator shows that the Cycle Peak has not yet reached the “extreme bull” phase, signaling the current bull run may continue and has not yet reached its peak.

Historical trends reveal that even during bull markets, price corrections are typical. For instance, during the 2017 bull market, Bitcoin experienced a 22% drawdown, while the 2021 bull market recorded corrections of 10% and 30%.

In 2024, the ongoing bull market has already recorded pullbacks of 15% and 20%.

In the stock market, trading was subdued ahead of the Thanksgiving holiday.