Despite the potential collapse of the cryptocurrency market in 2022, Bitcoin's position as the "alpha coin" has remained impressively resilient. With a market cap of approximately $398 billion and a $24,180,295 trading volume in the previous day, Bitcoin's dominance has grown by 43%.
The BTC bull market started in 2023 and is anticipated to gain value. The United States Consumer Price Index (CPI), which was released earlier this week, also demonstrates the declining value of the dollar in comparison to other currencies. On the other side, the CPI data offered the market the assurance it required to coincide with the decline in inflation.
The domination of BTC climbed by approximately 2% over the previous week, reaching a multi-month high as the price crossed the $20,000 mark.
Bitcoin Exhibits Positive Momentum
Investors will be surprised when BTC trades above $21,000 the next week. This upward trend prompted investors and traders from all over the world to return to the Bitcoin market and earn some quick money.
The outlook for the asset has improved when BTC officially crossed the $17,000 mark at the start of this week compared to the end of 2022.
BTC's price soared beyond $18,000 on Friday night before climbing to $19,000 and then $20,000 in the end. The bulls started a climb in the following hours, and it eventually drove BTC up to about $21,000 on Sunday.
Bitcoin has gained all of the lost territory from the FTX-Alameda Research disaster more than two months ago at the current price. Even if it has decreased from its local peak, the cost is still significantly higher than $20,000. The market value of cryptocurrencies is around $400 billion, and many investors are anticipating the start of a fresh bull run at any moment.
Sean Farrell, director of Fundstrat's digital asset strategy, said to Bloomberg:
Cryptoassets performed well following the soft CPI print, suggesting that crypto’s correlation to macro is not going away anytime soon
Altcoins retreat as Bitcoin rises
Most altcoins showed gains on the daily charts yesterday, but those numbers are currently negative. It has turned bullish around $22.45 and is still continuing in that direction after rising by more than 35% in a day and about 70% in a week. However, because of the daily decrease of 4.5%, it is already below that level.
Dogecoin (DOGE), Polkadot (DOT), Litecoin (LTC), Shiba Inu (SHIB), Avalanche (AVAX), Cardano (ADA), and Polygon are the top 10 daily cryptocurrency losers (MATIC).
Alternative cryptocurrencies like ADA and DOGE have seen a decline in value from their corresponding 24-hour highs of 0.34% and 0.08%, respectively. Over the previous day, ADA and BNB had slightly lost value. But during the past week, both currencies have significantly increased in value, jumping by almost 21% and 11%, respectively.