Bitcoin (BTC) Makes the Market Weather Again, Bitcoin Dominance Rises Too

Bitcoin (BTC) Makes the Market Weather Again, Bitcoin Dominance Rises Too

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The rate of the king of cryptocurrencies renewed a maximum in six months, the price of BTC rose above $57.7 K. The market share, Bitcoin Dominance grew by 15% in a month. When will altcoins follow bitcoin?

A month ago, Bitcoin Dominance was 40.89%, now it is almost 47%. The share of Ethereum, on the contrary, fell by more than one percent, to 17.8%. Other altcoins do not grow either, with rare exceptions. Experts predict continuing the growth in BTC above the all-time high (ATH) which is now $64.8 K. After the ATH update, BTC will consolidate and the growth of other cryptocurrencies is highly likely. Experts believe that the fundamental basis for the bull market is the growth of national debt and the potential danger of a US default (“rising US debt and tensions over a potential default”).

Mike McGlone, an analyst at Bloomberg Intelligence, states:

– Bitcoin may be entering a unique phase for a 4Q price rise as markets gain trust in the coding that defines the crypto’s supply.

The bitcoin supply is technologically limited to 21 million BTC. A wide range of investors finally believed that this only meant an increase in the price of BTC in the long term. McGlone believes that bitcoin is in the middle of a bullish cycle and compares the situation to April’s one when bitcoin grew rapidly to the new ATH. If the expert is right, then already on this wave of growth, BTC can reach the price of $100K, which several analysts predicted by the end of the year.

Some optimistic pundits believe that the rally will drive BTC to $200K or $300K. Such price levels are supposed to be “already programmed”. This means that the hash rate and network complexity have practically recovered from the negative from China, and have approached record highs. Network capacity and scalability are improved. Analyst Kevin Rooke noted on Twitter that in one day last week, bitcoin handled over $30 billion of value, this is a new record for the network. Experts note that commissions do not grow at the same time.

Investment firm CoinShares states it believes the bitcoin bull run is the result of hints from SEC Chairman Gary Gensler about a possible bitcoin ETF approval. After this news, investors started to buy BTC in a hurry. Over the week, the inflow of investments into bitcoin increased by $156 million, to $225 million.

At the same time, there is an outflow of money from altcoins. There was an outflow of funds in the amount of $14 million from funds focused on Ethereum. Experts consider this a temporary phenomenon since earlier the inflow to ETH was higher than to BTC.