Bitcoin Price Rises From 6-Month Slumber as $6,500 Returns, Alts Stagnate
BTC cleared itself of losses incurred over the previous six months on Friday morning, as the Bitcoin price returned to a high of $6,350. Some exchanges reported a spot price of $6,500.
This move returns Bitcoin to its valuation prior to the crash of November 2018, when the uncertainty surrounding the Bitcoin Cash hardfork wreaked havoc in the crypto market. Although some small-cap altcoins followed Bitcoin’s lead, most are lagging behind as profits from the recent altcoin surge continue to transfer to Bitcoin.
Bitcoin Price – BTC/USD
On Thursday afternoon BTC was trading at $6,025. By the time the earliest Western traders woke up on Friday morning, Bitcoin was valued at $6,353. That’s a 5.44% increase, and equates to an influx of just under $6 billion into the Bitcoin market cap.
CoinMarketCap reports daily trade volume of $18 billion – up from yesterday’s peak of $16 billion. As always, approach those figures with caution – especially since CMC no longer excludes data from many of the clown exchanges seen below.
“We see the market rejecting everything, except BTC. This has been our dominant investing thesis since 2011. We’re doubling down on Bitcoin Maximalism with new capital. As BTC climbs toward our 2011 target of $100,000, we believe everything except BTC will die-off.”
Every altcoin investor on the planet would presumably disagree, but at some point one can only throw their hands up in the air and laugh at the discrepancies between all the baseless predicitons.
Altcoin Surge On Its Way Down?
Looking at the trajectory of the altcoin market (excluding Bitcoin), we see a slow and steady ascent over the past six months. This is in stark contrast to the violent peaks and troughs witnessed over the past year.
It was for this reason that many expected a clear path to the next bull run from the December low. However, now that Bitcoin is on the way up, it appears to be at the expense of its direct competitors.
CoinMarketCap placed Bitcoin dominance at 58.5% on Friday – the highest it has reached since September 2018. The conservative estimates on Open Market Cap suggested BTC dominance was closer to 43.4%.
For a reminder of the differences between CoinMarketCap and OpenMarketCap, check out: If Just 5% of Trade Volume is Real, What Does That Mean for Altcoins?
Some alts have still found success over the past month or so, prime among them being small-cap tokens like Japan Content Token (JCT), which recorded 1,084% growth during one Eastern trading session.
On May 9th, Arcblock (ABT) hit 266% growth – and continued to pump well into the next day, taking total gains to over 300%.
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.