Bitcoin dominance hits four-year high as crypto market rebounds

The cryptocurrency market experienced a 9.9% rebound in April, with Bitcoin reaching a four-year high in dominance at 63% of the total crypto market value.

This recovery followed a period of volatility in March and was highlighted in Binance Australia's latest Monthly Crypto Market Insights report, which also pointed to investor caution amid ongoing uncertainty in global macroeconomic conditions.

Bitcoin led the market resurgence, with prices briefly correcting to approximately USD $75,000 in early April before swiftly recovering to finish the month above USD $90,000. The report attributed this to Bitcoin's perception as a "digital gold" and a hedge against widespread economic risks, further reinforcing its position as a preferred asset during uncertain times.

Institutional investors demonstrated increased confidence in Bitcoin, with Bitcoin-based Exchange-Traded Funds (ETFs) seeing the largest inflows since January 2025. These inflows significantly outpaced those into Ethereum-based products, suggesting a growing view of Bitcoin as a stable foundation for diversified investment portfolios.

James Quinn-Kumar, Director of Community Engagement for Binance Australia and New Zealand, commented on Bitcoin's prominence during the market resurgence. "The resurgence in Bitcoin dominance clearly shows its strength as a defensive asset," Mr Quinn-Kumar said. "When traditional assets experience turbulence, investors tend to look to alternative assets to diversify their portfolios. Bitcoin, with its widespread adoption and established track record, has emerged as a haven within the crypto space."

An important factor supporting the market in April was the temporary 90-day suspension of U.S. tariffs that provided immediate relief. However, the report noted that this pause did not erase underlying uncertainties, as investors remained mindful that trade tensions could re-emerge at any time.

Mr Quinn-Kumar addressed the impact of this development in the report, stating, "The tariff pause has provided temporary breathing space for markets, but investors recognise the relief may be short-lived. This caution is leading crypto investors to rotate from speculative tokens into established, blue-chip cryptocurrencies like Bitcoin and Ethereum rather than exiting the asset class entirely."

Alongside macroeconomic developments, regulatory changes played a role in supporting the cryptocurrency market's positive sentiment in April. U.S. authorities reduced digital asset reporting obligations for decentralised finance platforms and eased banking restrictions related to cryptocurrencies, a shift noted in the report as paving the way for broader institutional engagement with digital assets.

In Australia, the re-elected Labor government signalled intentions to introduce clearer regulations for cryptocurrencies, reflecting a growing trend among governments worldwide to provide more structured guidelines around digital assets.

Mr Quinn-Kumar highlighted the importance of regulatory clarity, saying, "It's promising to see governments around the world making progress toward clear crypto regulations. Establishing structured and consistent guidelines is essential for sustainable market growth and protecting consumer interests."

The report also provided insights into Australian investor behaviour, indicating that Bitcoin continued to dominate trading activity on the Binance Australia platform throughout April. Ethereum regained second place over Solana, driven by anticipation surrounding Ethereum's Pectra upgrade, which occurred in early May. This performance was seen to reflect both assets' resilience and long-term stability, with traders favouring blue-chip cryptocurrencies as a strategy to navigate ongoing market uncertainty.

The Binance Australia Monthly Crypto Market Wrap offered further details on market trends during April, reflecting both global confidence in established digital assets and cautious optimism based on macroeconomic conditions and regulatory signals.