Even if the cryptocurrency industry collapses in 2022, Bitcoin’s status as the “alpha coin” remains very stable. With a market capitalization of more than $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 will officially begin in 2023 and is expected to increase in value. In addition, the United States Consumer Price Index (CPI) was released earlier this week, indicating that the value of the US dollar is decreasing relative to other currencies. On the other hand, the CPI data gives the market the confidence it needs to follow the downward trend in inflation.
In the previous week, BTC dominance increased by almost 2%, returning to multi-month highs as its value breached the $20,000 level.
Bitcoin Shows Bullish Momentum
Reg Capital said that BTC will surprise investors next week by trading above $21,000. This upswing encouraged traders and investors around the world to re-enter the Bitcoin market and make quick money.
That is very strong #BTC Blue dominance retests as support
A Weekly Close at this current level will be set $BTC Dominance for further gains going into next week
Bitcoin looks set to enjoy more market dominance, at the expense of Altcoins#Crypto #Bitcoin https://t.co/86QZqvR5hf pic.twitter.com/8O1qIBlE7p
— Rekt Capital (@rektcapital) January 13, 2023
After BTC officially surpassed $17,000 earlier this week, the outlook for the asset is more bullish than it has been for the end of 2022.
On Friday evening, BTC price rose above $18,000, then $19,000, and finally $20,000. The following hours saw an increase initiated by the bulls, which eventually pushed BTC to close to $21,000 on Sunday.
At this price, bitcoin has made up all the ground since the FTX-Alameda Research meltdown more than two months ago. Although it has come down from the local peak, the price is still above $20,000. The cryptocurrency’s market value is close to $400 billion, with many investors expecting it to take off any day.
Fundstrat’s head of digital asset strategy Sean Farrell stated Bloomberg:
Cryptoassets performed well after the soft CPI print, showing that the correlation of crypto to the macro is not going away.
As Bitcoin Surges, Altcoins Fall Back
On yesterday’s daily chart, most altcoins showed gains, but the numbers are now negative. After increasing 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 a daily decline of 4.5%.
The 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 fallen, by 0.34% and 0.08%, respectively, from their respective 24-hour highs. The value of ADA and BNB has decreased slightly in the previous day. Both coins, however, have seen substantial gains during the past week, up by more than 21% and 11%, respectively.
Featured images from Unsplash.com, charts from TradingView.com