Even if the cryptocurrency industry were to crash in 2022, Bitcoin’s status as an “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 over the past 24 hours has increased by 43%.
According to market watchers, the BTC bull market officially started in 2023 and is expected to increase in value. Furthermore, the United States Consumer’s price index (CPI) was issued earlier this week, showing that the value of the US dollar is declining relative to other currencies. On the other hand, the CPI data gave the market the confidence it needed to continue the downward trend of inflation.
In the previous week, BTC’s dominance rose by almost 2%, returning to a multi-month high when the value broke above the $20,000 level.
Bitcoin shows bullish momentum
Social capital says that BTC will surprise investors next week by trading above $21,000. This rally encouraged traders and investors from around the world to re-enter the Bitcoin market and make a quick buck.
That is very strong #BTC New blue dominance test as support
A weekly close at these current levels would likely set $BTC Domain to get more profits for the next week
Bitcoin seems poised to enjoy further market dominance, likely at the expense of Altcoins#Crypto #Bitcoin https://t.co/86QZqvR5hf pic.twitter.com/8O1qIBlE7p
— RektCapital (@rektcapital) January 13, 2023
After BTC officially broke above $17,000 earlier this week, the outlook for the asset has been more bullish than it was at the end of 2022.
On Friday night, the BTC price topped $18,000, then $19,000, and finally climbed to $20,000. The next few hours saw a bull-initiated surge, which eventually brought BTC near $21,000 on Sunday.
At this price, bitcoin has regained all of its ground since the collapse of FTX-Alameda Research more than two months ago. Even if it has fallen from its local peak, the price is still well above $20,000. The market valuation of the cryptocurrency is close to $400 billion, and many investors expect a new bull run to begin at any moment.
Fundstrat’s head of digital asset strategy, Sean Farrell, told Bloomberg:
Crypto assets performed well after the soft CPI print, suggesting that the correlation of cryptocurrencies with macros is not going away anytime soon.
As Bitcoin Rises, Altcoins Pull Back
On yesterday’s daily charts, most altcoins showed gains, but those figures are now negative. After rising more than 35% in one 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 the daily drop 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 altcoins such as ADA and DOGE have fallen 0.34% and 0.08%, respectively, from their respective 24-hour highs. The value of ADA and BNB have decreased marginally from the previous day. Both coins, however, have seen substantial gains over the past week, rising over 21% and 11%, respectively.
Featured Image from Unsplash.com, Charts from TradingView.com
