Willie Woo, a renowned digital currency market analyst, examines the resurgence of Bitcoin (BTC) dominance and highlights three key factors contributing to its return to higher levels. Bitcoin dominance, indicating BTC’s share of the total market value, has reached around 60.6% today due to Donald Trump’s promises of imposing heavy tariffs on imports from China, Mexico, and Canada. In the past, Bitcoin dominance has experienced significant fluctuations. From 2016 to 2017, this index dropped from 89 to 41% as new projects entered the market and investors leaned toward altcoins. Conversely, Bitcoin dominance increased to 71.3% in January 2025, reflecting BTC’s stronger position in the market. This increase is attributed to factors such as the launch of Bitcoin spot ETFs in 2024, increased BTC acceptance by financial institutions, and its elevated status as a store of value in times of economic and geopolitical uncertainty. Additionally, the presence of a Bitcoin-friendly president in the US has had a significant impact. Willie Woo also lists three factors that previously led to a decrease in Bitcoin dominance. He refers to heavy investments in Initial Coin Offerings (ICOs) in 2017, scams in the decentralized finance (DeFi) sector in 2020, and the pump and dump trend of meme coins in 2023. According to him, Bitcoin dominance has now returned to its natural balance.
