Bitcoin

Bitcoin Up in a Year Again: Hits USD 11,000, Dominance Grows

It took one day for the most popular cryptocurrency, bitcoin (BTC), to climb from the long-awaited level of USD 10,000 to USD 11,000, boosting its market dominance and again showing positive returns in the past 12 months. However, even among the top 10 coins, BTC is still not the best performer.

At pixel time (04:40 UTC), BTC trades at USD 10.953, down from USD 11.306, reached in Monday’s final hours. The price is now rising by 7% a day, 19% a week, 22% a month, and nearly 14% a year. BTC’s last time at this level is August 2019. When it once again reached USD 12,000 before setting off on its journey to USD 6,900.

BTC price chart:

Bitcoin dominance on the rise

Meanwhile, BTC dominance, or the percentage of total market capitalization. That has increased by over 2 percentage points since Sunday to 62 percentage points.

While ethereum (ETH) is down today (-1.3%), major altcoins like bitcoin cash (BCH) (+9%), litecoin (LTC) (+9.6%) have outperformed BTC on both daily and weekly charts.

According to Joe DiPasquale, CEO of the crypto fund manager BitBull Capital, this BTC rally “has [many] interesting implications and is particularly in tune with the rally seen in gold and silver, both of which benefit from COVID-19 driven stimulus packages.

He added that Bitcoin appears to present an attractive alternative investment opportunity for investors as gold trades near its all-time high reflecting decreasing market confidence in current economic policies.

“In the meantime, Bitcoin FOMO [fear of missing out] is currently on display as BTC dominance is rising again and [altcoins] are posting losses as BTC rallies today. The FOMO, coupled with increasing volumes, indicates that this rally may ultimately push bitcoin to beat annual highs conclusively,” the CEO said.

He also suggested that market participants might want to follow Wednesday’s meeting of the US Federal Reserve for policy announcements. And keep an eye on gold, silver, and equities to evaluate market sentiments.

Co-founder and partner at crypto-hedge fund Spartan Capital, Kelvin Koh, added that a “small move in BTC” has already created breakdowns in a number of speculative DeFi assets with some falling over 20 percent per day.

“A further rotation of capital into $BTC and $ETH will probably expose some of the overhyped DeFi projects,” he said.

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