Bitcoin (BTC) Remains the King of Cryptocurrencies, But Maybe Not for the Long

Bitcoin (BTC) Remains the King of Cryptocurrencies, But Maybe Not for the Long

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The Ethereum rally which happened after the London hardfork is supported both by altcoins and by bitcoin. The king of cryptocurrencies is not ready to give up the throne.

The unexpectedly large growth of the leading altcoins, led by Ethereum, has not yet led to the fall of Bitcoin Dominance, on the contrary, the share of BTC is growing. Meanwhile, the share of ETH is also increasing and exceeded 20%.

Together with Ethereum, the leading altcoins with big functionality show positive dynamics. They are already constantly noted by experts: Cardano (ADA), Polkadot (DOT), Uniswap (UNI), Solana (SOL), Terra (LUNA). Binance Coin (BNB) and Dogecoin (DOGE) also went up in price, but experts consider their growth speculative. The growth of the Ripple (XRP) is organic and is based on a favorable forecast of the litigation.

Bitcoin’s growth has occurred largely due to recent statements by Elon Musk. He confirmed that he no longer considers bitcoin mining unsustainable, he is only waiting for confirmation that more than 50% of renewable energy is being used. Musk also promised that Tesla would again sell cars for BTC. And finally, he noted that bitcoin really “can make the world a better place”.

These statements neutralized a dangerous speech by SEC Chairman Gary Gensler who spoke about the increased regulation of cryptocurrencies, that’s why bitcoin price went up through two resistance levels, $42K and $45K. Previously, technical analysts noted that a breakout of these levels could lead BTC to renew its all-time high above $64K.

However, some analysts warn that the explosive market growth could push the authorities in the United States and other countries to take action against cryptocurrencies. Analyst Preston Pysh stated:

– If you take some of the big actors – China’s already out, take the United States out. Say you do it with maybe the G7 [The Group of Seven] kind of teams up, … and they try to shut down all the mining and whatnot. I think that Bitcoin would be set back quite a few years through those types of efforts.

This does make sense, and it is possible that bitcoin really will be placed in the situation of pressure from the authorities in the future. For example, the SEC does not abandon its attempts to stop the rise in the popularity of cryptocurrencies. A new story is the accusation of two businessmen from Florida that they sold unregistered securities under the guise of DeFi Money Market tokens. The SEC demanded that the collected $12.85 million be returned to investors and the businessmen should be fined $125K each. This is the first time a DeFi project has been tried in court.

However, the market is still optimistic. According to the cryptanalyst firm Santiment, the whales continue to accumulate BTC. Almost half of all BTC, 49.11%, have already been moved to the wallets of investors holding from 100 to 10,000 BTC. Two weeks ago, a historic maximum of this indicator was reached at 49.18%.