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.

BTC/USD Update

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.

Bitcoin (BTC/USD) targets new yearly high with latest advance. | Source: TradingView.

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%.

Bitcoin’s dominance rate continues to swell. Is this a death knell for altcoins? | Source: CoinMarketCap.

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.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi