Bitcoin reached a new high of $104,000 and increased its market share by 4.4%, to 57%.
The resurgence is a challenge to the narrative that an impending ” Altcoin Season” will occur, where alternative cryptocurrencies are often more popular than Bitcoin.
TradingView data shows that Bitcoin dominance dropped from 61.8% in November to 54.7% by December 4. This is a dramatic drop from the high of 61.8% it reached in November.
Bitcoin’s rally drives up market dominance
Bitcoin’s sudden surge to six-figures valuation halted this trend and caught the crypto market by surprise.
Bitcoin currently holds a 56% market share. Ethereum’s dominance on the market is around 13%.
The Bitcoin Fear & Greed Index is a barometer of market sentiment. It now has a score that equates to “extreme greed”, with a score 78.
Altcoins were also affected by the shift in market dynamics. Many of them had experienced a rally, while Bitcoin was consolidating around $95,000.
XRP has fallen 25% since hit its seven-year high at $2.90. It is now trading for $2.30.
As Bitcoin gained prominence, the momentum of other altcoins such as Binance Coin (BNB), and Tron (TRX), also waned.
The industry has dubbed December 5, “$100K day” to celebrate Bitcoin’s landmark.
Coinbase CEO Brian Armstrong spoke about Bitcoin’s incredible growth since its launch in 2012. He said, “If you purchased $100 worth of Bitcoin back then, that would be worth $1.5million today.”
Bitcoin is still in its early stages, but it has already outperformed other assets over the past 12 years.
Altcoins were also affected by the shift in market dynamics. Many of them had experienced a rally, while Bitcoin was consolidating around $95,000.
XRP has fallen 25% since hit its seven-year high at $2.90. It is now trading for $2.30.
As Bitcoin gained prominence, the momentum of other altcoins such as Binance Coin (BNB), and Tron (TRX), also waned.
The industry has dubbed December 5, “$100K day” to celebrate Bitcoin’s landmark.
Coinbase CEO Brian Armstrong spoke about Bitcoin’s incredible growth since its launch in 2012. He said, “If you purchased $100 worth of Bitcoin back then, that would be worth $1.5million today.”
“Bitcoin is the best-performing asset of the last 12 years, and it’s still early days.”
Significant liquidations have also been a result of the market shift.
CoinGlass said that $132 million worth of short positions were wiped out in just four hours, as traders scrambled for a way to adjust to Bitcoin’s sudden surge.
What’s Next for Bitcoin
Bitcoin’s historic surge beyond the $100,000 milestone captivated cryptocurrency markets, but Sergei Gorev remains cautious.
Gorev, in a statement shared by Cryptonews.com recently, predicted that price growth may be moderate beyond this level until a significant corrective action takes place.
The cryptocurrency market loves round numbers and prices often rise in these cases.
He added: “Also, note that the monthly, quarterly and semi-annual futures and option contracts will expire within two weeks.”
Gorev said that the price of Bitcoin is influenced by important market cycles. This includes expiry dates for futures and option contracts.
The expiration of monthly, quarterly and semi-annual contracts in the next two weeks will likely lead to increased volatility.
Gorev’s cautionary outlook is further heightened by the correlation between Bitcoin and the S&P 500, which he says is nearing what he calls the “overheating stage.”
Bitcoin’s price is likely to experience a major correction as the financial markets show signs of stress.
This view is further supported by divergences in the price charts, and an increasing USD exchange rate. These factors indicate that this rally could be losing momentum.
He concluded that “the price increase could continue, but it will not be significant.”
