The cryptocurrency market experienced a robust recovery in April 2025, surging 9.9% primarily driven by Bitcoin (BTC), according to a Binance Research report released on May 6.
The positive momentum was largely attributed to tariff pauses between the U.S. and China, which boosted market sentiment.
Bitcoin Dominance Continues to Rise
- Bitcoin’s share of the total crypto market cap increased to 63%, its highest level since 2021.
- This marks a continuation of BTC’s dominance, a trend seen since 2022.
- The report highlighted that Bitcoin’s strategic reserve narrative and its perception as digital gold have drawn significant investor interest.
Periods of Bitcoin dominance decline historically align with broader altcoin bull markets, most notably in late 2024. However, April’s surge indicates that Bitcoin’s role as a financial safe haven is becoming more pronounced as it moves deeper into mainstream financial systems.
Global Money Printing Fuels Bitcoin’s Momentum
A key driver of Bitcoin’s recent rise is the expansion of global money supply.
- The M2 money supply for G4 nations (U.S., Japan, China, and Europe) is projected to grow by a record $93 trillion.
- This surge in liquidity is seen as a contributing factor to Bitcoin’s upward trajectory, reinforcing its status as a hedge against inflation and a store of value.
Bitcoin proponents argue that the increase in money printing solidifies BTC’s role as digital gold, providing protection against fiat currency devaluation.
CeFi Sees Increased Investor Interest Amid Regulatory Shifts
In addition to Bitcoin’s rise, the report also pointed to a sharp increase in capital flowing into centralized finance (CeFi) firms over the past two months.
- Binance Research attributes this trend to shifting U.S. regulations, making CeFi companies more appealing to venture capital.
- As the U.S. remains a global hub for venture investments, the regulatory clarity is expected to fuel further growth for centralized crypto firms.
The report concludes that Bitcoin’s increasing dominance, paired with new capital inflows into CeFi, marks a shifting landscape in the broader crypto market.
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