Even as the cryptocurrency industry crashed in 2022, Bitcoin’s status as the “alpha coin” has remained remarkably stable. With a market cap of over $398 billion and a trading volume of $24,180,295, Bitcoin’s dominance has increased by 43% in the past 24 hours.
According to market observers, the BTC bull market officially started in 2023 and is expected to rise in value. In addition, the United States Consumer Price Index (CPI) was released earlier this week showing that the value of the US dollar is declining against other currencies. On the other hand, the CPI data gave the market the necessary confidence to follow the downward trend in inflation.
In the previous week, BTC’s dominance increased by nearly 2%, returning to a multi-month high as the value crossed the $20,000 level.
Bitcoin shows bullish momentum
stretches capital says BTC will surprise investors next week by trading above $21,000. This uptick encouraged traders and investors around the world to re-enter the Bitcoin market and start making money quickly.
That’s a very strong one #BTC Dominance retest of blue as support
A weekly close at these current levels would likely be instituted $BTC Dominance for further gains heading into next week
Bitcoin seems poised to enjoy more market dominance, likely at the expense of Altcoins#crypto #Bitcoin https://t.co/86QZqvR5hf pic.twitter.com/8O1qIBlE7p
— Rekt Capital (@rektcapital) January 13, 2023
After BTC officially crossed $17,000 early this week, the outlook for the asset was more optimistic than at the end of 2022.
On Friday night, the price of BTC surged above $18,000, then $19,000, and finally to $20,000. The following hours saw an increase initiated by the bulls, which eventually pushed BTC to nearly $21,000 on Sunday.
At this price, bitcoin has made up ground since the FTX-Alameda Research meltdown more than two months ago. Even if it’s dropped from its local peak, the price is still well above $20,000. The cryptocurrency’s market valuation is close to $400 billion, and many investors are hoping that another bull run could begin any day.
Sean Farrell, Fundstrat’s head of digital asset strategy, said so Bloomberg:
Cryptoassets performed well after the soft CPI print, suggesting crypto’s correlation to macro won’t go away any time soon
While Bitcoin rises, Altcoins are pulling back
On yesterday’s daily charts, most altcoins showed gains, but those numbers are now negative. After rising more than 35% in a day and almost 70% in a week, it has turned bullish and is now moving in that direction. However, it is currently below that level due to its 4.5% daily drop.
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 such as ADA and DOGE are down 0.34% and 0.08% respectively from their respective 24-hour highs. The value of ADA and BNB has fallen slightly over the past day. However, both coins have made significant gains over the past week, up more than 21% and 11% respectively.
Featured image from Unsplash.com, charts from TradingView.com