Even if the cryptocurrency industry crashed in 2022, Bitcoin’s status as the “alpha coin” has remained remarkably stable. With a market capitalization of over $398 billion and a trading volume of $24,180,295, Bitcoin’s dominance in the last 24 hours has increased by 43%.
According to market watchers, the BTC bull market officially began in 2023 and is expected to increase in value. In addition, the United States Consumer Price Index (CPI) was issued earlier this week, showing that the U.S. dollar’s value is decreasing relative to other currencies. On the other hand, the CPI data gave the market the confidence it needed to follow inflation’s downward trend.
In the previous week, BTC dominance increased by almost 2%, returning to a multi-month high as the value breached the $20,000 level.
Bitcoin Shows Bullish Momentum
Rekt Capital says that BTC will surprise investors next week by trading above $21,000. This upswing encouraged traders and investors worldwide to re-enter the Bitcoin market and make some quick bucks.
That’s a very strong #BTC Dominance retest of blue as support
A Weekly Close at these current levels would likely set $BTC Dominance for further gain heading into next week
— Rekt Capital (@rektcapital) January 13, 2023
After BTC officially surpassed $17,000 at the beginning of this week, the outlook for the asset has been more bullish than it was at the end of 2022.
On Friday evening, the price of BTC surged beyond $18,000, then $19,000, and finally pumped to $20,000. The next hours saw a rise initiated by the bulls, which ultimately pushed BTC up to near $21,000 on Sunday.
At this price, bitcoin has made up all of its ground since the FTX-Alameda Research meltdown more than two months ago. Even if it has dropped from its local peak, the price is still well above $20,000. The cryptocurrency’s market valuation is close to $400 billion, with many investors hoping for a new bull run to begin any day.
Fundstrat’s head of digital asset strategy Sean Farrell stated to Bloomberg:
Cryptoassets performed well following the soft CPI print, suggesting that crypto’s correlation to macro is not going away anytime soon
As Bitcoin Surges, Altcoins Retreat
On yesterday’s daily charts, most altcoins showed gains, but those figures are now negative. After increasing by more than 35% in a day and nearly 70% in a week, it has turned bullish and is now moving in that direction. However, it is currently sitting below that level due to the daily decline of 4.5%.
The top 10 daily cryptocurrencies that lost value are Dogecoin (DOGE), Polkadot (DOT), Litecoin (LTC), Shiba Inu (SHIB), Avalanche (AVAX), Cardano (ADA), and Polygon (MATIC).
The value of alternative cryptocurrencies like ADA and DOGE have dropped, by 0.34% and 0.08%, respectively, from their respective 24-hour highs. The value of ADA and BNB has decreased marginally over the previous day. Both coins, however, have seen substantial gains during the past week, rising by more than 21% and 11%, respectively.
Featured image from Unsplash.com, charts from TradingView.com