Bitcoin's value has surged dramatically since election night, reaching a record high of over $93,000 on Wednesday before dropping slightly below $90,000.

Although other cryptocurrencies typically follow Bitcoin’s lead, they haven't been able to match the recent rise of the world's largest and most recognized digital currency. The Bitcoin Dominance Index (BDI), which measures Bitcoin’s market share compared to the entire crypto market, hit 61.39% on Wednesday—its highest level since March 2021.

The BDI calculates the total value of Bitcoin as a percentage of the global cryptocurrency market. It's a basic metric with various interpretations, depending on whether certain assets are included or excluded. For instance, stablecoins, which are tied to the U.S. dollar, are often left out since they don't fluctuate like other cryptocurrencies. Another popular measure of Bitcoin's dominance is the ETH/BTC trading pair, as Ethereum is often seen as Bitcoin's main competitor. Even though Ethereum-based ETFs had strong inflows recently, Ethereum has lost nearly all the gains it made against Bitcoin after Election Day in the U.S.

Dogecoin Stands Out
Why is Bitcoin pulling ahead? Traditionally, Bitcoin leads the market, with other cryptocurrencies catching up and sometimes surpassing it later. However, this trend might be shifting due to new technical developments like layer-two networks and Ordinals on Bitcoin, which can replicate features found on networks like Ethereum and Solana.

Moreover, the interest of major financial institutions is heavily focused on Bitcoin, particularly with spot Bitcoin ETFs and the idea of Bitcoin as "digital gold." One of Donald Trump's election promises included the creation of a "strategic bitcoin stockpile," while BlackRock has labeled Bitcoin as "a unique diversifier."

Amid Bitcoin's surge, Dogecoin has been a surprising exception. It has gained 145% against Bitcoin in the past month, potentially linked to Elon Musk’s support and his association with Trump’s successful campaign. Musk has been a strong advocate for the meme-based cryptocurrency, which may explain its standout performance.

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