Bitcoin's dominance has reached 45%, its highest level since May 2021, as the cryptocurrency's price has surged 82% since the beginning of January. This increase in dominance is unusual as it typically rises when other crypto prices decrease. Digital asset investment products saw inflows totaling $57 million last week, with bitcoin representing 98% of those inflows.

The Shapella upgrade is set for this week on the Ethereum network, though inflows were relatively minor at $600,000. The countercyclical move in bitcoin's dominance comes amid regulatory uncertainty and banking stress in the US and Europe, including the de-pegging of Circle's USDC stablecoin due to the collapse of several US banks in March.