- With Bitcoin reaching levels of $30,000 on June 21, Bitcoin Dominance has shown a significant increase.
- Bitcoin dominance tested its levels from April 26, 2021, indicating that Bitcoin’s power against altcoins has increased.
- The reaction of dominance to Bitcoin’s past increases and its current situation provides clues as to whether a new bull run is approaching.
Bitcoin reached $30,000 on June 21, and Bitcoin Dominance showed a significant increase. Based on past performances, we have reasons to believe that Bitcoin could initiate a new bull run.
Bitcoin Dominance and Historical Development
On December 7, 2020, when Bitcoin was at $19,400, Bitcoin dominance was at 64%. This indicated that the value of other cryptocurrencies relative to Bitcoin’s market value was relatively low. During this period, Bitcoin’s price rose to $65,000, and during this time, Bitcoin dominance did not fall below 50%.
Bitcoin’s Impact on Altcoins
When Bitcoin’s price dropped from $65,000 to $31,000, Bitcoin dominance fell to 46%. This indicated that the value of other cryptocurrencies had increased relative to Bitcoin’s market value. However, on November 8, 2021, when Bitcoin’s price rose to $69,000, Bitcoin dominance increased again, and the market value of altcoins reached $1.6 trillion.
Looking to the Future: A New Bull Run?
On June 21, 2023, Bitcoin dominance rose above 51% again after a 2-year hiatus. This indicates that the value of other cryptocurrencies relative to Bitcoin’s market value has decreased. We are eager to see if this situation will trigger a new bull run with Bitcoin ETF applications and Powell’s recognition of stablecoins as official currencies.
Conclusion
Bitcoin’s dominance historical data and current trends provide important information for investors and cryptocurrency enthusiasts. In the past, periods of increased Bitcoin dominance have often been accompanied by periods of increased Bitcoin prices. Therefore, Bitcoin’s current rise and its dominance reaching 51% could be a precursor to a potential bull run. However, remember that more data and analysis are needed to confirm this. Keep following Bitcoin and cryptocurrency markets, as there are always new and interesting developments in this exciting field.
