The Bitcoin market dominance climbed by 4.4% to 57%, reaching $104,000, initiating talks about the altcoin season.
Bitcoin’s dominance has picked up a surprising surge, reversing a prior downward trend that had pushed its dominance down to 54.7% on Dec. 4 before peaking at 61.8% in November. Much of the cryptocurrency market has been left stunned and scrambling to adapt to the wildly explosive rally.
Bitcoin’s Rally Rebuilds Market Dynamics
Now, the market has leaped to six figures, and Bitcoin is the undisputed leader, while Ethereum pales in comparison to its 13% market share. This has also shaken the comfort many altcoins had built up in Bitcoin’s earlier $95K consolidation.
For example, XRP, which just hit its seven-year high of $2.90, recently dropped 255% from $2.30. Similarly, Binance Coin (BNB) and Tron (TRX) have also been unable to hold on to recent rallies.
The Bitcoin Fear & Greed Index has taken another leap into ‘extreme greed’ territory, scoring 78, adding to the excitement. However, industry leaders celebrate the milestone for traders and investors, dubbing December 5 “$100K Day.”
Bitcoin Fear and Greed Index is 78. Extreme Greed
Current price: $96,436 pic.twitter.com/BetOK9MOH3— Bitcoin Fear and Greed Index (@BitcoinFear) December 4, 2024
As Bitcoin’s journey gets mirrored, we look back to Coinbase CEO Brian Armstrong, who remembers, ‘If you bought $100 worth of Bitcoin in 2012, that would be worth $1.5 million. It’s still early days, but Bitcoin is the best-performing asset of the last 12 years.’
If you bought $100 of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000.
If you kept the $100 USD you’d only be able to purchase about $73 worth of goods today.
Bitcoin is the best performing asset of the last 12 years, and it’s still early… pic.twitter.com/dvBgX5K7or
— Brian Armstrong (@brian_armstrong) December 5, 2024
The spike brought on massive market liquidations. According to CoinGlass, BTC’s rapid ascent has seen $132 million worth of short positions liquidated in just four hours, a volatile sign.
Analysts Prediction For Bitcoin Price
However, analysts warn to be careful as Bitcoin’s milestone has captured the market. According to Sergei Gorev, Head of Risk at YouHodler, the current rally might soon find resistance, leading to a correction.
“With so many futures and options contracts set to expire in two weeks on a monthly, quarterly, semi-annual and annual basis, that already introduces a lot of volatility,” Gorev said.
He pointed out Bitcoin’s strong correlation to the S&P 500 index and added that traditional markets are in an ‘overheating phase.’ These factors and rising USD exchange rates indicate that Bitcoin’s rally may be overdone.
Gorev concluded that the price increase may continue, but not significantly, and traders must be ready for more volatility.
Bitcoin’s recent dominance surge has slapped down hopes for an upcoming altcoin season when alternative cryptocurrencies tend to trounce the flagship. Even with many altcoins on a roll, Bitcoin is back in focus and defying the market narrative.
Arnoud Star Busmann, CEO of Quantoz Payments, emphasized, “Bitcoin’s surge past $100K is no surprise, particularly with expectations that Trump’s administration will create a more favourable regulatory environment for cryptocurrencies. The introduction of the stablecoin USDT was a game-changer, unlocking liquidity and transforming crypto trading dynamics.”
The cryptocurrency market is leaning forward as the Bitcoin world prepares for its historic high. The market continues to hold its breath to confirm whether this opens the wallet to the beginning of growth or a precursor to correction.
Currently, Bitcoin is trading at $103,318, showing an increase of 4.54% in 24 hours.
