Bitcoin, the largest cryptocurrency by market value, has been trading above $29,000 for the past few days, despite some negative news from the U.S. and global economy. According to some analysts, bitcoin may be poised to reclaim its dominance and spotlight in the crypto space in the coming months.

One of the factors that may boost bitcoin’s appeal is the uncertainty surrounding the U.S. Federal Reserve’s monetary policy. The Fed is expected to hold its next meeting on May 3-4, where it may provide more clues on its plans to taper its bond-buying program and raise interest rates. The Fed’s stimulus measures have been supportive of risk assets, including bitcoin, but also raised concerns about inflation and debt.

Some investors may see bitcoin as a hedge against inflation and currency devaluation, as it has a limited supply of 21 million coins and a decentralized network that is not controlled by any central authority. Bitcoin may also benefit from the growing adoption of its underlying technology, blockchain, by various sectors and industries.

Another factor that may favor bitcoin is the resilience of its network and community amid challenges and threats. Recently, bitcoin faced some regulatory hurdles in Turkey and India, as well as a power outage in China that affected some mining operations. However, bitcoin managed to recover from these events and maintain its support level above $29,000.

Moreover, bitcoin may regain some of the attention and market share that it has lost to other crypto tokens and projects in recent years. According to a report by Berenberg Bank, a German investment bank, bitcoin’s share of the total crypto market capitalization has fallen from over 80% in 2017 to around 50% today. This is partly due to the rise of alternative cryptocurrencies, such as ether (ETH), which powers the Ethereum network and supports various applications and innovations in the crypto space.

However, Berenberg Bank argues that bitcoin still has a unique value proposition and a strong network effect that may allow it to reclaim its dominance and spotlight in the future. The bank cites several factors that may support bitcoin’s growth, such as its scarcity, security, liquidity, brand recognition, institutional adoption and innovation potential.

The bank also notes that bitcoin may benefit from the upcoming upgrades to its protocol, such as Taproot and Schnorr signatures, which aim to improve its scalability, privacy and functionality. These upgrades may enable new use cases and features for bitcoin, such as smart contracts and multi-signature transactions.

In conclusion, bitcoin may be able to overcome the current challenges and uncertainties in the global economy and the crypto space, and emerge stronger and more dominant in the future. Bitcoin may also attract more investors and users who are looking for a reliable store of value and a medium of exchange that is not subject to the whims of central banks and governments.