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Bitcoin hits a fresh 30-month high as altcoins lag in rally

Bitcoin

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TL;DR

  • Bitcoin has experienced a market surge, doubling its lows at the start of the year. However, as it regains its market dominance, the same cannot be said about Ethereum.
  • Bitcoin experienced a 32% rise over the past month. On the other hand, Ether only surged 12%. ETH’s relative value against BTC is also reaching low levels not seen since May 2021.
  • Just incoming – Gary Gensler, chairman of the SEC, says that the agency is evaluating 8 to 10  filings of potential exchange-traded products applicable to Bitcoin. 

Bitcoin has recently experienced surges in its price following recent events in the crypto space, including the spot BTC exchange-traded funds (ETF) applications and other financial news. However, as Bitcoin shows dominance in the digital space, the same can’t be said for Ethereum, as Ether altcoins experience a lag rally. 

Price movement up and down the crypto market is common based on the highly volatile nature of digital currencies. News and other macroeconomic events act as catalysts in surging these market prices. Currently, Bitcoin has experienced a gain of over 50% and has recorded a fresh high not seen since April 2021. 

Bitcoin dominant rally 

Bitcoin’s recent bull rally can be linked to the ETF’s growing interest as investors seek to invest in the digital asset as a safe haven. According to market data, BTC’s market share experienced a 30-month fresh high on Wednesday. The dominant crypto has topped other cryptocurrencies, including Ether and other altcoins. 

Referring to the BTC Dominance rate, a measure that analyzes the capitalization of the first-generation crypto, Bitcoin, has recorded a surge to 54.4%. Based on market data analysis from TradingView, this is a level not seen since the end of the first quarter of 2021, in April. 

Simply put, following BTC’s share being above 50% means that the digital currency is worth more than all other cryptocurrencies. 

Moreover, the index consolidated between 39% and 49% and broke out from this range in mid-June. This was filing the spot Bitcoin ETF application by BlackRock. The organization filed for its iShare spot Bitcoin exchange-traded funds in the United States. 

The ETF narrative is still buzzing and showing positive promise for the digital space. As the crypto community awaits the approval of the bitcoin ETFs by the Securities and Exchange Commission, growing interest in the digital product is still being witnessed as investors place long positions in BTC’s market. 

According to analysts online, the approval is nearly certain, and if checked, it could ignite a new wave of demand for Bitcoin. 

Market sentiments on BTC dominance

One crypto market analyst points out that: “Historically, when bitcoin’s price rises, that money begins filtering out into altcoins. This means there is a very real possibility that the launch of one or more spot ETFs could lead to the next major bull run in the entire cryptocurrency ecosystem.”

Bitcoin’s dominance over Ether and altcoins can be attributed to the asset’s market cycle and historical data that can be relied upon as stable and less risky crypto. According to  another analyst, Bitcoin is an investment safe haven, and this has proven its dominance against all digital currencies combined, including the second largest crypto, Ether (ETH).

The analyst commented about BTC dominance and noted, “Bitcoin tends to lead crypto markets in the early part of a cycle, only losing dominance when investors get more comfortable moving out on the risk curve, and smaller tokens overtake in performance.” 

The analyst also added, “BTC has the ETF and safe haven narratives as tailwinds. ETH has a regulatory chill and upgrades uncertainty as headwinds.”

Additionally, BTC experienced a 32% rise over the past month as the ETF narrative gets interesting. On the other hand, Ether only surged 12%. ETH’s relative value against BTC is also reaching low levels not seen since May 2021. This records Bitcoin doubling to a 100% gain this year while ETH only rallied by 50%.

BTC is designed as a digital gold alternative, and as such, as investors become cautious of crypto investments, they often turn to BTC during times of high volatility. Also, BTC’s increasing adoption by institutional and retail traders has also seen its price surge, recording its dominance in the digital realm. 

SEC has 8-10 filings of possible Bitcoin ETF products – Gensler

Gary Gensler, chairman of the SEC, stated on Thursday that the agency is evaluating eight to ten filings of potential exchange-traded products applicable to Bitcoin. 

Several companies, including BlackRock (BLK.N), Bitwise, WisdomTree (WT.N), Fidelity, and Invesco (IVZ.N), have submitted applications for BTC funds in the United States.

Analysts at JPMorgan speculate that if the SEC denies approval for spot BTC exchange-traded fund (ETF) applications, it could be subject to legal action. Although rejection is improbable, it is conceivable and could lead to legal action against the SEC, the analysts noted. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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