The cryptocurrency market has been experiencing a surge in volatility as fears of a trade war between the United States and China continue to escalate. This has led to a spike in Bitcoin’s dominance in the market, as investors turn to the leading cryptocurrency as a safe haven asset.

According to recent data, Bitcoin’s market cap dominance has reached its highest level in over two years, currently standing at around 70%. This is a significant increase from just a few months ago when it was hovering around 50%. This spike in dominance can be attributed to the uncertainty and instability caused by the ongoing trade tensions between the two economic superpowers.

As investors seek refuge from the potential consequences of a trade war, they are turning to Bitcoin as a store of value. This has resulted in a surge in demand for the cryptocurrency, driving up its price and market dominance. At the same time, altcoins have seen a decrease in their market share, with many experiencing what is known as “capitulation wicks” – a sharp drop in price followed by a quick recovery.

While this may seem like a negative trend for altcoins, it is important to note that Bitcoin’s dominance has historically been cyclical, with periods of dominance followed by periods of altcoin outperformance. This means that as the market stabilizes and trade war fears subside, altcoins may see a resurgence in demand and market share.

In the meantime, Bitcoin continues to solidify its position as the leading cryptocurrency and a reliable hedge against economic uncertainty. Its decentralized nature and limited supply make it an attractive asset for investors looking to diversify their portfolios and protect their wealth.

As the trade war between the US and China continues to unfold, it will be interesting to see how the cryptocurrency market reacts and whether Bitcoin’s dominance will continue to rise. One thing is for sure – the crypto market remains as unpredictable and exciting as ever.