- Recent developments in the crypto space, particularly spot Bitcoin exchange-traded fund (ETF) applications and other financial news, have caused significant spikes in Bitcoin’s price.
- With reference to BTC dominance, the Bitcoin Dominance Index, a measure analyzing Bitcoin’s market value as the original cryptocurrency, has increased to 54.4%.
- Bitcoin’s dominance over Ether and other altcoins can be attributed to the asset’s market cycle and its reliance on reliable data as a stable and less risky cryptocurrency.
The Bitcoin price has drawn attention with a recent substantial surge, and it has sparked discussions about what’s next for Bitcoin.
Bitcoin Price Initiated a Significant Rally
Recent developments in the crypto space, particularly spot Bitcoin exchange-traded fund (ETF) applications and other financial news, have caused significant spikes in Bitcoin’s price. However, Bitcoin has been outperforming in the digital space, which is not the case for Ethereum as Ether and altcoins have experienced a lagging rally.
Price movements in the crypto market are common due to the highly volatile nature of digital currencies. News and other macroeconomic events act as catalysts that drive market prices. Currently, Bitcoin has gained over 50%, marking a fresh high not seen since April 2021.
Bitcoin’s recent bull rally can be associated with increased interest in ETFs as investors seek safe-haven assets in the digital realm. According to market data, BTC’s market share reached a fresh 30-month high on Wednesday. The dominant cryptocurrency outperformed other cryptocurrencies, including altcoins.
Referring to BTC dominance, which analyzes the market value of Bitcoin, the original cryptocurrency, the Bitcoin Dominance Index, has risen to 54.4%. According to market data analysis from TradingView, this is a level not seen since the end of the first quarter of 2021, or since April. Simply put, having more than 50% of the market share means that Bitcoin is more valuable than all other cryptocurrencies.
Moreover, the index consolidated between 39% and 49% and broke out of this range in mid-June. This occurred after BlackRock applied for a spot Bitcoin ETF. The company submitted applications for iShare spot Bitcoin exchange-traded funds in the United States.
The ETF story is still a subject of discussion and holds promise for the digital space. While the crypto community awaits approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), the growing interest in the digital asset continues, and investors are taking long positions in BTC. According to analysts, approval is almost certain, and if realized, it could trigger a new wave of demand for Bitcoin.
Market Perspectives on BTC Dominance
A crypto market analyst suggests, “Historically, when the price of Bitcoin rises, it starts to trickle down towards altcoins. This means that the launch of one or more spot ETFs could be a real possibility for the next major bull run in the entire cryptocurrency ecosystem.”
Bitcoin’s dominance over Ether and other altcoins can be attributed to the asset’s market cycle and its reliance on reliable data as a stable and less risky cryptocurrency. According to another analyst, Bitcoin acts as a safe haven for investment, demonstrating its superiority over all digital currencies, including Ether (ETH).
Additionally, BTC has seen a 32% increase in the last month, and as the ETF story becomes more intriguing, Ether has only seen a 12% increase. ETH’s relative value against BTC has reached levels not seen since May 2021. This means that Bitcoin has doubled this year with a 100% increase, while ETH has only rallied with a 50% increase.
BTC was designed as a digital alternative to gold, and investors often turn to BTC during periods of high volatility in the crypto space. Additionally, increased adoption of BTC by institutional and retail investors has contributed to its digital dominance.
SEC Evaluating Potential Bitcoin ETF Products
SEC Chairman Gary Gensler announced that the agency is evaluating eight to ten applications for potential exchange-traded funds (ETFs) related to Bitcoin. Many companies, including BlackRock, Bitwise, WisdomTree, Fidelity, and Invesco, have applied for BTC funds in the United States.
JPMorgan analysts predict that if the SEC does not approve spot Bitcoin ETF applications, it could lead to legal actions. While the probability of rejection is low, it is possible and could result in legal actions against the SEC, according to analysts.
