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Bitcoin’s Dominance Increases by 4.4% to 57% as BTC Reaches All-Time High of $104,000, Questioning Altcoin Season Perspective
Bitcoin has reached a record high of $104,000, increasing its market dominance by 4.4% to 57%.
This resurgence contests the prevailing notion of an approaching “altcoin season,” during which alternative cryptocurrencies typically outperform Bitcoin.
Data from TradingView indicates that Bitcoin’s dominance had fallen to 54.7% on December 4, following a steep drop from its November peak of 61.8%.
Bitcoin’s Rally Boosts Market Dominance
Nevertheless, Bitcoin’s remarkable ascent to a six-figure price point reversed this trend, surprising the cryptocurrency market.
Currently, Bitcoin’s market dominance stands at 56%. In comparison, Ethereum’s market dominance is approximately 13%.
The Bitcoin Fear & Greed Index, which gauges market sentiment, is now at “extreme greed” with a score of 78.
Bitcoin Fear and Greed Index is 78. Extreme Greed
Current price: $96,436 pic.twitter.com/BetOK9MOH3— Bitcoin Fear and Greed Index (@BitcoinFear) December 4, 2024
The change in market dynamics has also affected altcoins, many of which had experienced a rally while Bitcoin stabilized around the $95,000 level.
XRP, which recently reached a seven-year high of $2.90, has since dropped 25%, now trading at $2.30.
Likewise, other altcoins such as Binance Coin (BNB) and Tron (TRX) have seen their upward momentum diminish as Bitcoin reclaimed the focus.
Industry participants have marked Bitcoin’s achievement, referring to December 5 as “$100K Day.”
Coinbase CEO Brian Armstrong noted Bitcoin’s remarkable growth since the platform’s inception in 2012, stating, “If you purchased $100 of Bitcoin then, it would now be valued at $1.5 million.”
“Bitcoin is the top-performing asset of the past 12 years, and it’s still early days.”
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If you bought $100 of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000.
If you kept the $100 USD you’d only be able to purchase about $73 worth of goods today.
Bitcoin is the best performing asset of the last 12 years, and it’s still early… pic.twitter.com/dvBgX5K7or— Brian Armstrong (@brian_armstrong) December 5, 2024
The market shift has also led to considerable liquidations.
CoinGlass reported that $132 million in short positions were eliminated within four hours as traders rushed to adapt to Bitcoin’s unforeseen surge.
What Lies Ahead for Bitcoin?
Bitcoin’s historic rise beyond the $100,000 threshold has captivated the cryptocurrency market, yet Sergei Gorev, Head of Risk at YouHodler, remains cautious.
In a recent statement shared with Cryptonews.com, Gorev forecasted that the price may experience only modest increases beyond this point before a substantial correction occurs.
“The cryptocurrency market has a strong affinity for round numbers, and prices often behave accordingly.”
“Additionally, be aware that monthly, quarterly, semi-annual, and annual futures and options contracts are set to expire in two weeks,” he added.
Gorev stressed that Bitcoin’s price movements are influenced by significant market cycles, including the expiration of futures and options contracts.
With these contracts approaching expiration in two weeks, traders should prepare for increased volatility.
Further contributing to this cautious perspective, Gorev pointed out Bitcoin’s correlation with the S&P 500 index, which is nearing what he describes as the “overheating phase.”
As the broader financial market exhibits signs of pressure, the probability of Bitcoin facing a notable price correction rises.
Divergences in price charts and a strengthening USD exchange rate further reinforce this viewpoint, suggesting that the current rally may be losing steam.
“The price increase may persist, but not to a significant extent,” he concluded.
“Numerous technical indicators have already aligned towards a price correction, and many algorithmic traders will begin seeking entry points to open short positions to address divergences on the charts.”
The post Bitcoin Dominance Surges 4.4% to 57% as BTC Hits Record $104,000, Challenging Altcoin Season Narrative appeared first on Cryptonews.
