As Bitcoin (BTC) surged past $12,000 on the morning of June 26, 2019, the proportion of BTC to total cryptocurrency market capitalization rose to a two-year high of 61.9 percent.
Resurgence of Bitcoin
The current bull cycle is continuing with extended upward waves with no end in sight. As reported by BTCManager, the current outlook for Bitcoin is vastly different from the previous bull market. Rather than retail hopium, this run is being driven by larger institutions operating in and around the space.
Bitcoin’s ability to absorb capital far exceeds that of any other cryptocurrency simply because of its longevity. Though BTC evolved from P2P cash to a settlement layer, the ideals and principles of the network have changed little. Bitcoin’s dominance is not just based on the fact that it is the first move, but also due to its resilience and security.
Another dimension to capital fueling Bitcoin is the introduction of derivative contracts. Other than BitMex and Deribit, not many exchanges have futures and options for altcoins. Ethereum futures are in the pipeline, but for now, Bitcoin reigns supreme and is easily the most accessible cryptocurrency on the market today.
The death of Bitcoin has been called for many times, resulting in crypto enthusiasts losing faith in certain media outlets that channel too much FUD.
Exuberance and FOMO Will Return
Once BTC breaks the $20,000 threshold, the market will see the same irrational behavior that it did in 2017. Up until this point, the price movement has been backed by volume and fundamentals. This could reverse once the all-time high is breached, as it did last time.
The surge in dominance is expected as Bitcoin always leads the pack during bull and bear markets. Last time around, dominance increased to nearly 70 percent before plummeting and causing a massive rally in altcoins. Considering Bitcoin’s alignment with historical cycles, most analysts are expecting the same.
When BTC cools off from here, or maybe a little higher, it is widely expected to trigger an altcoin rally.
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