Bitcoin’s dominance has seen a significant recovery in the past week, reaching a multi-month high as the flagship cryptocurrency continues to trade above $20,000. This comes at a time when the altcoins have been experiencing gains, only to retrace back today. BTC’s dominance is currently above 41%, the highest it has been since November 8. The recent surge in bitcoin’s price has brought its market capitalization close to $400 billion, with ongoing speculations about the start of a new bull run.
The past few days have been particularly bullish for bitcoin, with the cryptocurrency breaking above $17,000 and soaring past $18,000, $19,000, and even approaching $20,000. A spike in price on Friday took BTC to $21,250 on Bitstamp, marking its highest price in over two months. Despite a slight correction from this peak, bitcoin continues to trade above $20,000. The recovery in price has also marked a return to the levels seen before the FTX-Alameda fiasco.
While bitcoin continues to dominate the market, altcoins have not fared as well in the recent trading sessions. Many altcoins that saw significant gains yesterday have retraced back today. Solana, for example, surged by 40% at one point, hitting a multi-month high above $23, but has since declined by 4.5%. Other altcoins like Binance Coin, Ethereum, Ripple, Cardano, Dogecoin, and others have also experienced losses ranging from 1.5% to 7% in the past 24 hours.
Despite the retracement in altcoins, the overall cryptocurrency market cap remains near $970 billion, after briefly touching $1 trillion yesterday. The volatile nature of the crypto market means that prices can fluctuate rapidly, leading to gains and losses within short time frames. As bitcoin continues to hold above $20,000 and its dominance increases, investors and traders are closely monitoring the market for signs of future price movements and trends.
Overall, the recent price movements in the cryptocurrency market have been driven by a mix of factors, including institutional adoption, macroeconomic trends, regulatory developments, and investor sentiment. With bitcoin’s price hovering above $20,000 and its dominance rising, the market is in a state of anticipation as to whether this marks the beginning of a new bull run or if further corrections may be on the horizon. As always, investors are advised to exercise caution and conduct thorough research before making any trading decisions in the volatile crypto market.
Discussion about this post