Bitcoin Is Destroying the Competition as Price Smashes Through $13,000
Bitcoin’s upward trajectory intensified on Wednesday, as the price returned above $13,000 for the first time in nearly two weeks. In the process, bitcoin’s dominance rate has swelled to more than 65%, the highest in around 27 months.
The bitcoin price extended higher on Wednesday, peaking at $13,154.78 on Bitstamp. At last check, the BTC/USD exchange rate was up 4.1% at $13,084.46. The cryptocurrency was trading above $13,000 all major exchanges.
Bitcoin’s technical indicators suggest further upside is in store for the digital asset. The relative strength index (RSI), a closely watched momentum indicator, is tracking north of 66. Anything above 60 is considered bullish.
Over the 24-hour trading cycle, bitcoin was up 5.5%, according to CoinMarketCap. It was the best performing coin in the top-20.
At current values, bitcoin has a total market capitalization of $233 billion. Its market cap peaked around $245 billion last month.
Bitcoin has recovered 20% from Friday’s low. The recovery has been accompanied by a sharp rise in trading volume. Trading activity on verified exchanges topped $2.2 billion on Wednesday, according to Bitwise data.
Bitcoin Dominance – A Death Knell for Altcoins?
For the first time in over two years, bitcoin’s dominance rate has returned above 65%, which is a testament to BTC’s leadership pace of the broader cryptocurrency market. The dominance rate, which refers to the percentage of the overall cryptocurrency market held in bitcoin, reached a high of 65.2% on Wednesday, according to CoinMarketCap.
Bitcoin’s dominance rate has increased by 14 percentage points since the beginning of January. Over that stretch, bitcoin’s price has appreciated by nearly 250%.
Altcoins and tokens have also benefited from the recovery, but have mostly paled in comparison to king bitcoin. While most altcoins have risen sharply in dollar-denominated terms, they’ve gotten crushed relative to bitcoin.
The Ethereum-to-bitcoin exchange rate, which is seen as a proxy for altcoin demand, has plunged in recent weeks. At last check, the ETH/BTC pair was down 3.4% at 0.02366. ETH/BTC turned bullish last month after it crossed the 0.03 level. However, the rally stopped short of a key technical level. Read more: Ethereum’s Catch-Up Game Could Spark the Next Major Crypto Rally.
With ETH/BTC struggling to regain momentum, the long-awaited altcoin season is unlikely to materialize anytime soon – at least, not with any velocity that challenges bitcoin’s dominance rate.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView and CoinMarketCap.