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Is Bitcoin Flexing Its Market Dominance After Rallying to $5,000 Price? Bouncing Off 50% Floor

  • Jack Thomas
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    📊🏎️There has been little reason for Bitcoin’s recent spike to $5,000, but could it have to do with its reaction to an emerging altcoin market? The market dominance of Bitcoin was starting to fall under 50% until this spike saw the major cryptocurrency push itself back closer to 52% dominance


Is Bitcoin Flexing Its Market Dominance After Rallying to $5,000 Price? Bouncing Off 50% Floor
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Seemingly out of nowhere, the price of Bitcoin shot up seventeen percent within 30 minutes on Tuesday to reach its highest point in four months. On some exchanges, the major cryptocurrency even topped $5,000.

The effect of this was seen as positive across the markets with all the top 20 coins benefiting from substantial gains – but none of these gains were as big as Bitcoin’s. However, there is already a pullback being seen as Bitcoin is now closer to $4,600, but ahead of other altcoins.


An important metric to also look into is how Bitcoin has managed to boost its market dominance somewhat after starting to slip dangerously through the ‘crypto spring’ of Q1 in 2019. Altcoins, with Litecoin being a prime example, had doubled in value and thus wasted away from the Bitcoin market dominance.

Fighting back

Before this rally and in the last 30 days, Bitcoin’s dominance declined from 51.9 percent to 50.1 percent, which accounts for around $73 billion. But now, following gains of near 15 percent, the market dominance is closer to 52 percent.

Bitcoin has always had an interesting relationship with the overall market. As the dominant force behind the cryptocurrency market, it has often swayed the direction that the market heads.

However, there have been times where the altcoins surrounding Bitcoin have fought back and looked to take their own dominance and lead within the general market movement. This has been the case somewhat as the cryptocurrency space has looked to break into a new spring with price rises and better performances.

Reactionary

It is hard to pinpoint Bitcoin, as its own entity, looking to fight back against altcoin dominance, but it is still quite plausible. There is a lot to be had in dominating the cryptocurrency market, and with other altcoins constantly looking to outdo the original blockchain, Bitcoin’s dominance is often under threat.

However, it still remains the most well known and widely used cryptocurrency and thus, it has the biggest and best liquidity and distribution. As such, the market is quick to move and react when needs be.

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Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet — Is This the Future?


Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet — Is This the Future?
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On a day where the markets are predominantly in the red, but only slightly, it is interesting to note that Binance Coin is surging. The exchange token is up fiver percent, but it is totally understandable as to why there is so much positivity around the company.

The biggests news, which comes off the back of its decentralized platform, Binance DEX, is that the Binance Chain mainnet has been launched and that they will be executing their Mainnet Swap on April 23rd.


This means that Binance Coin will be shifting away from Ethereum, leaving questions open as to what this means for Ethereum, which has been under the pump to stay relevant in today’s crypto and blockchain space. This move will result in a migration of $3 billion worth of BNB being moved away from the Ethereum blockchain and onto the new Binance chain.

A positive investment

All the good news emanating out of Binance has not only helped the coin to climb in price when the rest of the market settles down – it is helping it head towards a new all time high. Binance, like many altcoins, reached its ATH in January of 2018 in that parabolic stage.

Binance Coin hit $24 back then, and now, it is at $21 and rising with the thoughts being that when the mainnet move takes place, there could well be an even bigger surge. It is also interesting to note that just a few months ago, at the end of last year, it hit lows of $4.50.

Competing with Ethereum?

The mainnet move is obviously good news for Binance, as the markets are suggesting, but is it equally bad news for Ethereum, which was the holder of $3 billion thanks to the exchange. Many people have speculated that this new blockchain platform will pose competition to Ethereum, but ultimately it will help diversify Binance Coin’s use cases while also increasing its utility.

So perhaps rather than being a direct competition to ETH, it is only going to strengthen Binance Coin and in doing so perhaps spell out the future of cryptocurrencies as there is good reason to believe that this token, with its added utility and use cases, will be a viable token for the world going forward.

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