Data: Bitcoin dominance is close to the 2017 bull market, and the bull market atmosphere is back

• Bitcoin is on the verge of reaching the market dominance it achieved following the 2017 bull run.

• Compared to altcoins, interest in Bitcoin is growing day by day.

• This unexpected surge may be partially attributed to bullish sentiment due to Bitcoin’s recent performance ahead of its halving.

Bitcoin once again silenced its critics, soared in price, and incidentally woke up altcoins.

According to data shared by Messari researcher Ryan Watkins, Bitcoin is approaching the market dominance it reached after the 2017 bull run.

Bitcoin’s “dominance” essentially represents Bitcoin’s current share of the total cryptocurrency market cap. A higher dominance suggests that investors now find Bitcoin more attractive than all other cryptocurrency competitors combined. Traders always put their money where their mouth is.

From a historical perspective, Bitcoin began to lose its dominance in the crypto market in 2018 due to a sharp price crash. As traders turned to altcoins to diversify their cryptocurrency investments and avoid risk, Bitcoin's popularity declined. But as Bitcoin's price recovers, its dominance will also recover.

However, it is worth noting how quickly the metric measuring Bitcoin dominance has grown over the past few days. This growth is staggering and beyond what the market typically considers. Data from crypto analytics firm Messari suggests that this increase in interest has not been seen since the day Bitcoin was near its all-time high.

While crypto markets are unpredictable and usually markets do what markets do, there are two reasons why Bitcoin dominance is surging:

Fundamentally, we cannot ignore the fact that the third Bitcoin halving is approaching. In less than two weeks, Bitcoin’s inflation rate will be reduced by 50% as the mining block reward will be cut in half and the rate at which new Bitcoins enter the market will be slowed down in the same way.

Many analysts believe that Bitcoin halving will lead to a bull run due to the sudden reduction in supply, and therefore, traders may move from altcoins to Bitcoin ahead of the halving event.

Technically speaking, Bitcoin's recent surge is an ideal day for retail and institutional traders. After the price crash during last month's panic event (3.12 incident), Bitcoin has seen a stunning recovery, with prices rising by $1,000 in just one week and more than 21% this week. This increase is more impressive than the performance of many altcoins, so Bitcoin is also likely to attract the attention of traders who have been waiting for the much-anticipated "competitive coin season".

Whatever the reason, one thing is certain: Bitcoin’s bullish sentiment is back.

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