Bitcoin Dominance Falls as Altcoins Rise, US Bitcoin ETF Approval Looms
Summary:
Bitcoin (BTC) continues to fluctuate within a static range as bull strength wanes at year-end, yet maintains above the 20-month high of $44,000. Bitcoin's overall share in the cryptocurrency market has declined, opening up opportunities for altcoins like Binance Coin (BNB) and Solana (SOL). Ethereum (ETH) is anticipated to follow suit. The excitement surrounding the potential approval of the U.S. Bitcoin ETF has reduced, prompting a possible "sell the news" event. Despite the robust price surge, traders still cash in on current levels, thus maintaining a stubborn price range.
Bitcoin's (BTC) fluctuations persist within a lateral boundary owing to the bull's inadequate vigor as the year concludes. BTC's price remains stable above the 20-month peak of $44,000, as indicated by Cointelegraph Markets Pro and TradingView. Despite securing its year-to-date earnings, Bitcoin is yielding to alternative cryptocurrencies this month. Its portion of the total cryptocurrency market cap faces difficulty in capitalizing the vigorous gains made earlier in 2023. As of December 28, the dominance has rolled back from its recent apex of 55.3%, now settling at its lowest since mid-October at 51%. This decrease gives altcoins the space to regain some ground, as seen in the upward trend in charts. Over the Christmas period, Binance Coin (BNB) and Solana (SOL) recorded significant growth while predictions hint at Ethereum (ETH), the largest altcoin, following suit soon.
Excitement over the potential endorsement of the first Bitcoin spot price exchange-traded fund (ETF) in the United States has dwindled, reducing market hype. The decision awaits within a couple of weeks, showing no significant institutional positioning yet. However, volatility might hit the market immediately after the grand reveal, potentially prompting a "sell the news" event. This is reinforced by unusually high funding rates on derivatives markets, which are currently at their peak since BTC/USD hit its all-time high in November 2021.
Buyers continue to fuel the consistency of the BTC price action, aiding its motion between boundaries, as seen by on-chain data. Traders are still capitalizing on profits at current levels, maintaining a stubborn price range. Checkmatey, lead on-chain analyst at research firm Glassnode, claims that this selling is within historical normalcy and can potentially predict future trends. Bitcoin's profits are being extracted without reaching the extremes seen at local and global market summits.
Published At
12/28/2023 4:06:27 PM
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