When Alt-Season? Altcoins Bleed Out Against Bitcoin As The Dominance Exceeds 65%
Bitcoin’s unbelievable daily surge to record levels above $20K has left most alternative coins behind their leader, as most of them bleed against their BTC value. The Bitcoin Dominance over the market has increased to 65%, while the entire market capitalization has increased by $75 billion in a day.
Bitcoin Price Is Trading Above $22K
After consolidating for a few days around the $19,000 price tag, the primary cryptocurrency went on a tear yesterday. The asset started by breaking above the coveted $20,000 for the first time.
The price action led to investors’ massive attention, which caused some temporary serious outages on some of the most popular cryptocurrency exchanges, such as Binance and Coinbase.
If everyone thought that Bitcoin will be done for the day after breaking $20K, the primary cryptocurrency continued its magical climb by shattering two more milestones – $21,000 and $22,000. This set a new all-time, as of writing these lines, of over $22,888 (on Bitstamp).
Interestingly, the price increase coincided with the rising number of wallets holding at least 1,000 bitcoins. Glassnode data revealed that such wallets had marked a new all-time high of 2,294, thus breaking the previous record seen three days ago.
Altcoins Bleed Out Against Bitcoin
Just as in crypto, most alternative coins took advantage and followed BTC upwards. However, while they have registered impressive gains against the U.S. dollar, they have remained substantially outperformed by their leader.
As the red chart below demonstrates, XRP is among the few coins that have actually gained value against bitcoin (6%). The rest of the top ten cryptocurrencies, including Ethereum, Bitcoin Cash, Binance Coin, Cardano, Litecoin, Chainlink, and Polkadot, have lost between 3% and 9% compared to BTC.
Consequently, bitcoin’s dominance over the market has increased to 65%. This means a 2% expansion in a day and 5% in three weeks.
Nevertheless, since the entire market is in green against the dollar, the total market capitalization has felt the positive effects. The cumulative market cap of all cryptocurrency assets has spiked from $560 billion to $635 billion in a day. This is the highest level registered since early January 2018.
