CoinMarketCap’s Bitcoin Dominance rate has indicated a rise of 46% today. The price has risen up to touch a two month high ceiling of $7,820. This seems to be a sustainable increase, and the price graph is rising sharply.
The CoinMarketCap Dominance Index has remained a valuable tool in gauging and assessing the standing of various cryptocurrencies in the global cryptocurrency market time and again. It is a good indicator of growth of cryptocurrencies in terms of each other. The indicator pins all alternative and dominant cryotcurrencies together. The market capitalization index represents the desirability of one cryptocurrency alternative over the rest.
Market capitalization helps understanding the demand for each currency as buyers move from one to another, as per changes in desirability. Therefore, according to today’s index, Bitcoin has done relatively well over the lack-luster alter-currencies.
The spike is speculated to rise furthermore in the coming weeks. As a demand-side multiplier effect may soon set in. This raises the notion of safety & low risk for new and beginner buyers. As for the highly informed cryptocurrency veterans, it leads to higher returns per coin bought or previously collected. Thus, as per the index suggestion, investors have been switching to Bitcoin over better and lesser used alternatives. Bargain hunters are still and always waiting on Bitcoin for a greater and sustainable rise in the price; as well as costs incurred and forgone in terms of gains. This limits the Bitcoin demand via existing alternatives to the currency within the cryptocurrency market for now, until further developments in the index.
This as of now, has marked a new wave of highs for Bitcoin and has been a consistent trend emergence from the past two-months, after a very long seven-month period of decline. Bitcoin hit it’s lowest low earlier this year in January.
After sluggish market trends, Bitcoin has been quickly rising towards heavy geared price rocketing. The gauge rose to 42.74% earlier on Wednesday, July 18, the highest level since April 14, and was last seen a tad lower at 42.5%. During the same time period, BTC has rallied from $5,755 (June 25 low) to $7,820. Bitcoin has finally found a floor after months of rallying low.
46% gain today, only means that this is a consistent upward climb. The rise shows a promising upward trend in terms of demand and traded volume for a good two-months now. Bitcoin is also seen as a well marketed and generally accepted cryptocurrency. This increased demand and the rising volume has historically indicated a bull-run for the entire global cryptocurrency market. It also demarcates an expected influx of fiat currency into the crypto world.
The sharp rise in the Bitcoin dominance rate, could be considered a sign of investor confidence in the current Bitcoin price rally. However, Bitcoin has, not too long ago, deceived several investors and buyers last year in December. The ghosts of the sharp crash from $9,990 USD to $5,755 USD over one night may still lurk over the prospects and expectations from this rising trend.
The increasing usage, rising acceptability and improved performance for overall cryptocurrencies show that the investor faith and preference of cryptocurrency over other currencies remains unshaken. The monetary damage that Bitcoin faced, was temporary and clearly forgotten in retrospect.
The 100-day Moving Average, Bitcoin is expected to reach $8,000 USD, maintaining the buyer confidence as per status quo. Once this mark is hit, the currency might begin to fall instantaneously mimicking the December crash patterns. Strategic selling off of Bitcoins is a prerequisite in maintaining gains as per expectation for each investor. The current appearance is rather overstretched and means that investors are likely to rotate money among altcoins (as happened in late December 2017 and early January) until Bitcoin achieves a favorable and steady stance.
Earlier in July, Bitcoin rose at to above $7,500 USD. A short-term bearish-to-bullish trend emerged. The crawl soon translated into a sharp rise. Bitcoin has gained momentum in a span of two months.
4-hour RSI is also reporting overbought conditions. pic.twitter.com/w4BGNocDvE
— CoinDesk Markets (@CoinDeskMarkets) July 18, 2018
The sustainability can be supported through the creation of a Bitcoin ETF. It would be priced from a bundle of crypto-assets that fluctuates in value primarily in accordance with over-the-counter trading desks, as opposed to online cryptocurrency exchanges. It can enhance the demand and make the buying and selling of crypto currency more and more smoother and less risky. The enhanced investment prospects may attract laymen and ordinary nonprofessional buyers raising the demand, price and market for the currency. Bitcoin being a major player in the crypto market capitalization, is likely to benefit the most if such a standard targeted at the general public is achieved.
Another step that can immensely strengthen the Bitcoin rise and the cryptocurrency success is national adoption and better understanding of digital currencies, including but not limited to Bitcoin. This will create not only a greater and larger demand but also open up newer avenues through a better coherence utility imaging. Being a global favorite, Bitcoin is likely to become the most affluent worldwide too fast, too soon. As a result, it may add to the stability in demand and a sustainable increase, number of times it changes hands and at the price that it does, due to a greater and widespread buyer base.
Bitcoin is the worlds leading cryptocurrency, considering what the start of the year was like for its investors and buyers, this is a major pivot in the history of Bitcoin and cryptocurrencies. It was clear then and obvious now, that the currency has not only risen but also made up for the losses incurred midway. Even though this market capitalization was expected to rocket as such in May 2018, on a price of $10,000 USD. Perhaps, the price could still be met if all prerequisites to insulate the market, from outside or internal crashes and shocks, are met effectively.