Bitcoin's Market Share Hits 8-Month High as Price Passes $6K

View Bitcoin's dominance rate has hit 8-month highs, suggesting investor confidence in the recent price rally.

Bitcoin's recent rally looks sustainable, according to the charts, and the cryptocurrency's rising dominance rate suggests investors are bullish.

The price of a single bitcoin jumped to $6,099 earlier today, the highest level since November 14, according to Bitstamp data.

BTC's dominance rate, which tracks its percentage of the total cryptocurrency market capitalization, has also jumped to 57.14 percent, the highest for eight months, according to CoinMarketCap.

A rising dominance rate essentially means the demand for bitcoin is greater than the demand for alternative cryptocurrencies and suggests that investors are buying bitcoins for the long haul and not merely to fund altcoin purchases.

Bitcoin's near 50 percent price rally from its April 1 low near $4,000 is accompanied by a rise in the dominance rate from 50 percent to the current 57.14 percent.

Had the dominance rate stayed put, the recent rally could have qualified as a speculative bubble, i.e. investors rotating money out of BTC and into cheap altcoins in a bid to make a quick profit.

During the same time frame, its dominance rate dropped from 45 to 35 percent.

The dominance rate rose from 38 percent to 66.5 percent in the second half of 2017 when prices went from $1,700 to $20,000.

As a result, the recent rise in the dominance rate could be considered a confirmation of a new bull market.