Bitcoin Dominance Reaches New High in 2023
Bitcoin Dominance on the Rise
According to a crypto analyst, Bitcoin’s dominance rate, which represents its share in the overall cryptocurrency market, has reached a new high in 2023. This upward trend in BTC dominance has been consistent, with the rate reaching unprecedented levels this year.
Bitcoin Dominance Surges
Bitcoin’s dominance has been gaining traction since the beginning of the week. After four consecutive days of gains, the dominance rate reached 52.72% on Friday, marking the highest level so far this year based on TradingView data.
Breaking Out of the Range
The recent rise in Bitcoin’s dominance corresponds to a bullish breakout observed in June. This breakout indicated the end of a prolonged period of range-bound trading between 38% and 48%.
Bitcoin Price Surge
Bitcoin’s dominance surge coincided with a significant price increase, with Bitcoin surpassing the $30,000 mark. This milestone was achieved for the first time since July, and Bitcoin’s price has seen a weekly gain of over 10% amidst cryptocurrency market volatility.
Bitcoin ETF Approval Anticipation
Investors’ growing confidence in the approval of a Bitcoin exchange-traded fund (ETF) has contributed to Bitcoin’s price surge. Coinbase’s chief legal officer, Paul Grewal, expressed certainty that a Bitcoin ETF will be approved by the Securities and Exchange Commission (SEC) in the United States. Although no specific timeline was provided, Grewal emphasized that the final decision rests with the SEC.
Predictions for Bitcoin ETFs
Michael Novogratz, CEO of Galaxy, predicts that the SEC will authorize exchange-traded funds directly investing in Bitcoin this year. CryptoQuant, a blockchain analytics start-up, also forecasts that Bitcoin spot ETFs could potentially increase the market size by $1 trillion.
This article highlights the recent surge in Bitcoin’s dominance and its correlation with the price increase. The anticipation of a Bitcoin ETF approval adds further optimism to the market. As the cryptocurrency industry continues to evolve, Bitcoin’s dominance and its impact on the overall market will remain a crucial metric to monitor.
