Key Points
- Bitcoin’s price increased by 4.4% due to rising demand from institutional investors.
- Bitcoin’s dominance is expected to reach 60% in the coming months before initiating a reversal to trigger the macro altseason.
The total market capitalization of all cryptocurrencies surged over 3 percent in the past 24 hours to about $2.51 trillion, fueled by the mild price pump of Bitcoin (BTC).
Bitcoin gained over 4 percent in the past 24 hours to briefly reach a daily high of $67,452 on Friday during the early Asian session. This has signaled bullish momentum after consistently closing above the 50 and 200 daily Moving Averages (MAs).
Bitcoin’s Growing Dominance
Bitcoin’s dominance had its highest daily close of around 56.50 percent on Thursday. According to crypto analyst Benjamin Cowen, Bitcoin dominance could easily reach 60 percent in the coming months before initiating a much-anticipated reversal to trigger the macro altseason.
Institutional investors are pouring more money into Bitcoin and its related products, recognizing it as a reliable digital gold. For instance, Marathon Digital Holdings Inc announced it has adopted a full Bitcoin plan on Thursday after acquiring $100 million worth of BTCs, joining MicroStrategy Inc and other public firms.
Increase in Bitcoin Accumulation
On-chain data provided by CryptoQuant shows that long-term Bitcoin holders have aggressively accumulated more coins in the past year. As a result, the supply of Bitcoin on centralized exchanges has gradually declined to a multi-year low.
Spot On Chain’s on-chain data analysis reveals that a smart whale accumulated 1,147 Bitcoins, worth over $75 million, from Binance in the past nine days. BlackRock’s IBIT was the only spot Bitcoin ETF issuer that registered a positive cash inflow of about $70.75 million on Thursday.
Investors are also diversifying their crypto portfolio through the recently approved spot Ethereum (ETH) ETFs. Apart from Grayscale’s ETHE, which registered a net cash outflow of about $346 million, the majority of the spot Ether ETF issuers reported positive cash inflows on Thursday.
Economic Factors
The correlation between Bitcoin and the stock market has significantly declined in the past few months. However, the recent stock market crash has impacted the entire crypto industry. Bitcoin is highly adopted by the same institutional investors that have invested in the stock market.
Crypto liquidity is expected to significantly improve in the coming months amid the upcoming US general election. The US Fed could also initiate highly anticipated interest rate cuts similar to China, the Bank of Canada, and the European Central Bank (ECB).
Price Predictions
Bitcoin’s price is on the cusp of retesting its all-time high above $73K in the near term after forming higher highs and higher lows in the daily time frame. The one-hour Relative Strength Index (RSI) also indicated a potential bullish breakout as it broke out of a falling trend.
