Bitcoin Price Hits $89K as Market Dominance Climbs to 4-Year High

Bitcoin price surged to a six-week high of $88,900, marking a significant milestone for the leading cryptocurrency. This latest rally underscores Bitcoin’s growing appeal as a safe-haven asset amid global financial market volatility, reinforcing its status as the dominant player in the crypto space.

According to data from CoinGecko, Bitcoin has risen by 18% since hitting its 2025 low of $75,000 just weeks ago. This bullish momentum positions Bitcoin at its highest level since March 7, reflecting renewed investor confidence.

As reported earlier, Bitcoin’s price action has been closely mimicking that of gold. The precious metal recently reached a record high just shy of $3,500 per ounce, suggesting investors are flocking to assets perceived as safe hedges during uncertain times.

Traditional Markets Decline as Bitcoin Gains Strength

Bitcoin’s recent rise has occurred alongside a troubling downturn in traditional financial markets. Key US indexes — including the S&P 500, Nasdaq, and Dow Jones — began the week with substantial losses of around 2.5%. This divergence indicates a growing decoupling of Bitcoin from conventional market patterns.

Commenting on this shift, Satoshi Action Fund’s founder Dennis Porter highlighted the trend as “massively bullish,” as Bitcoin begins appearing more resilient compared to mainstream equities and bonds.

Further compounding market uncertainty is the ongoing friction between President Donald Trump and Federal Reserve Chair Jerome Powell. Trump has criticized Powell for maintaining high interest rates, even calling him a “major loser.” Meanwhile, geopolitical tension continues to intensify after China warned against alliances that clash with its interests and Japan declared it would no longer yield easily in tariff negotiations with the US.

Economist Alex Krüger described the situation as the US initiating economic self-sabotage, adding to the concerns causing investors to seek alternatives like Bitcoin and gold.

Bitcoin and Gold Lead as Bonds Fall Out of Favor

The Kobeissi Letter noted a notable correlation returning between Bitcoin and gold for the first time in months. Since April 7, gold prices have climbed more than 15%, while Bitcoin has appreciated by over 18%. This alignment suggests that investors are turning to proven safe-haven assets due to increasing concerns over dollar weakness and global instability.

“Markets are pricing in US dollar weakness and more instability,” the Kobeissi Letter observed, emphasizing that “Bonds are no longer a preferred safe haven.”

Bitcoin Dominance Reaches New Multi-Year High

Bitcoin dominance, which measures Bitcoin’s share of the entire cryptocurrency market capitalization, has jumped to a four-year peak of 64.6%, according to data from TradingView. This level, not seen since February 2021, reflects a substantial flow of capital into Bitcoin while alternative cryptocurrencies (altcoins) struggle to maintain momentum.

Roughly $350 billion has flowed into the cryptocurrency market since the dip on April 7. However, most of this capital has been absorbed by Bitcoin, indicating investor preference remains heavily tilted toward the market leader.

Meanwhile, major altcoins continue to flounder. Ethereum has dropped below $1,600, while XRP approaches the $2 threshold again. Binance Coin fell under $600, and Solana weakened to $135. This sluggish performance from altcoins reinforces the idea that the much-anticipated “altseason” remains distant.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

As Bitcoin continues to dominate and outperform both traditional financial assets and competing cryptocurrencies, its role in shaping global investor sentiment grows increasingly evident. Reduced confidence in government monetary policy, persistent inflation fears, and geopolitical headwinds may continue propelling capital toward Bitcoin in the coming weeks.