Bitcoin Price Lurks Near $11,000 as Dominance Rate Hits Six-Week High
Bitcoin’s price approached $11,000 on Monday for the third time in as many days, as investors continued to favor ‘digital gold’ over its counterparts in the altcoin universe.
The bitcoin price traded within a $420 range on Bitstamp and eventually peaked at $10,971. At the time of writing Monday morning, the BTC/USD exchange rate was hovering at $10.863, up 0.3% from the prior session. Over the 24-hour trading cycle, the price is up more than 2%.
Bitcoin shattered the $11,000 price level on Saturday for the first time in 15 months. It would eventually peak at $11,200 before consolidating in the high-$10,000 range. The largest digital currency is up nearly 200% since the start of 2019.
Although bitcoin’s strong performance has had a cascading effect on the broader market, altcoins and tokens have failed to keep up with king BTC. Bitcoin’s dominance rate, or the share of the overall crypto market held in BTC, hit 59.3% on Monday, the highest since mid-May. Excluding bitcoin, the altcoin/token asset class was worth $133.7 billion on Monday, according to CoinMarketCap.
Altcoins have performed exceptionally well in dollar-denominated terms but have gotten crushed versus bitcoin.
At current values, bitcoin has a total market capitalization of $193.7 billion. The so-called ‘real 10’ trade volume has more than tripled in recent weeks. Daily trade volumes on verifiable exchanges totaled $2 billion amid the latest upsurge, according to Bitwise data.
India’s Bitcoin Premium
On Sunday, Hacked speculated whether the Streisand effect in India was partly responsible for bitcoin’s massive bull run. The Streisand effect is a phenomenon whereby an attempt to censor information unintentionally makes it more readily available. In the case of India, a potential ban on cryptocurrency trading may have created more awareness about the asset class.
The threat of prohibition seems to have unleashed a buying frenzy on the subcontinent, with bitcoin premiums climbing to $500. As TrustNodes reports, bitcoin was selling for 817,400 Indian Rupees ($11,700) in the south Asian country when it peaked at $11,200 on global exchanges.
TrustNodes quoted an Indian cryptocurrency trader who claimed “all the international transactions are blocked by my government to crypto.”
The trader is likely referencing the Reserve Bank of India’s 2018 edict barring financial institutions from servicing cryptocurrency exchanges. Earlier this month, several reports indicated that the Indian government was looking to implement an outright ban on digital asset ownership and trading, including administering ten-year jail sentences for those who mine, sell or hold digital assets. Read more: Was India Responsible for Bitcoin’s Latest Surge?
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. Chart via TradingView.