Bitcoin Looks to Test $8,500 as Dominance Rises to 47%

Bitcoin (BTC) price remains above $8,000 to hit a high last seen on May 23, extending its market dominance to 47%.

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Bitcoin (BTC) price remains above $8,000 to hit a high last seen on May 23, extending its market dominance to 47%.

The current dominance ratio for the top currency represents a three-month high level. BTC last had a market dominance of more than 40% on April 19, 2018.

Just to put this into perspective, a 47% rate means that the top coin has reached levels last seen in December 2017. The rise in BTC’s market cap and volume has come on the back of a steady surge in its price over the last one month.

Narrow trading range

Bitcoin (BTC) currently trades at $8,188, up 2.76 percent over the 24-hour period and over 11 percent higher over its value in the last 7 days. 

It continues to consolidate gains following recent spikes that have moved it further from the recent low of $5,835 reached on June 28.

It also comes in the aftermath of an indifferent performance by the top altcoins. At the moment, Bitcoin is only bettered by Stellar over the last 7 days. However, in the last 24 hours, the top coin has performed better than any other coin in the top ten.

It’s clear that most of the top 10 cryptocurrencies have not been able to match Bitcoin’s performance, and have traded negatively against the leading crypto. Many have declined or stagnated as BTC continued to gain, especially in the month of July. For instance,

Ethereum, Litecoin, and Ripple have all struggled to reach or hold momentum at prices of $500, $100, and $0.50 respectively.

It means that Bitcoin’s strong performance compared to the top ten altcoins has contributed to its increasing total cryptocurrency market cap.

Given that the rest of the coins are in a fight to break above resistances, any continued uptrend by the leading digital coin could see it break above the 50% dominance barrier.

In the event that happens, it would mark the first time that occurs in 2018. The last time BTC dominated by 50% or over in the market dates back to mid-December 2017, just before it hit its all-time high price.

Bitcoin adds $10 billion to Market cap in 24 hours

It has been argued before that the market dominance metric isn’t reflective of the underlying strength of Bitcoin.

However, the spike in BTC prices and the fact that the rest of the market has struggled leads to the belief that the next Bitcoin Price boom could be on the cards.

Bitcoin prices have increased by about 21% in the last 7 days, and it has seen its market cap increase by almost $22 billion since July 17.

According to XBT.net, its current market capitalization stands at $137 billion, up by $10 billion on July 23 figures at $127.

The rising market cap has been gradual over July, from about $109 billion on July 1. The total market capitalization at the time of writing is about $297 billion, up from $293 a day earlier. The average intraday trading volume is $28 billion.

Bitcoin in demand

A few days ago, Litecoin founder Charlie Lee irked quite a multitude when he urged the crypto community to buy Bitcoin before venturing into any other altcoin.

It may have rubbed off wrongly with many, but the truth is that Bitcoin appears to be more in demand than most of the other cryptocurrencies.

The reason this assertion holds water is given weight by the spike in BTC’s dominance index. It basically translates into the fact that the top crypto has seen a spike in demand.

Now, that may have nothing to do with the LTC creator’s call. However, it could be an indicator that savvy investors believe bitcoin will see more gains, compared to other cryptocurrencies.

As such, the belief has led to convictions that it’s better to buy BTC at the moment than to put money elsewhere.

It would be the same case for the top coin if investors lost confidence in its price movement. That’s when money is moved into other assets, essentially triggering altcoin surges.

Positive news contribute to BTC bull run

The continued rise in BTC prices could be an indicator that the market has turned away from the bearish market.

The view was encapsulated by Barry Silbert of Digital Currency Group. He was quoted last week as saying that the recovery could be on hand. His comments expressed optimism, as he added: “I think we’ve probably hit the bottom for the year”, before predicting a rally to even higher prices.

Such comments are widespread among many crypto enthusiasts, who believe a tide of great news is the reason Bitcoin’s Bull Run may continue.

There has been an anticipation that SEC could be set to approve a Bitcoin ETF, a move that could bolster institutional investors.

Trading bitcoin ETFs would mean investors have the chance to invest in bitcoin without suffering the challenges and risks associated with trading BTC on exchanges.

To top the great news was the suggestion that big money from world’s leading ETF and hedge fund manager BlackRock was exploring the possibility of investing in Bitcoin. It saw Bitcoin prices spike above $7k, from whence the latest surge has grown.

Other news involved the appointment of crypto-supportive David Solomon as the new CEO of Goldman Sachs. He indicated that the investment bank could explore ways of adding various crypto products to those offered to its clients.

There was also a positive view outlook of blockchain and cryptocurrency from the recent meeting of G20’s Finance Ministers & Central Bank Governors (FATF). Other than postponing the decision on regulatory recommendations until October, the summit also regarded crypto assets as essential tools in world finance.

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