Bitcoin Increases Market Dominance As Price Enters Uncharted Territory
Bitcoin is presently enjoying all the media presence as the digital asset has skyrocketed in value to place well above $45,000. Before the price surge, Tesla announced that it had made a huge buy of around $1.5 billion in the digital asset, pushing the total number of Bitcoin held by institutional investors high.
With the recent price surge, Bitcoin once again saw its market dominance surge by around 1.5% as various mid and low placed altcoins saw a different fortune other than the one that their leader saw. After the Tesla news broke out, Bitcoin did waste time to react to the news as the digital asset saw a gain of close to $5,000 in minutes.
Analysts previously predicted a decline in price
With the price surge, the digital asset closes in on the $40,000 price junction held in the early part of this year. It was not until later that the digital asset saw another price surge, which catapulted its price close to $45,000 to smash the previous all-time high record and set another one. This recent price surge came after several analysts said that Bitcoin would face so many hurdles after the digital asset failed to break above the $40,000 during the weekend.
According to the analysts, the asset was expected to head south as Monday approached, but the investment from Elon Musk owned Tesla turned its fortune around. With Bitcoin refusing to break above the $40,000 and major altcoins adding on significant values, the market dominance of the asset reduced by a significant amount over the weekend.
With the recent action that took place over the weekend, Bitcoin saw its market domination decline as the figure closed in on 60% to end the market day. With the Tesla influenced Bitcoin price surge, the asset has seen its market domination figure surge and top well over 62% as other altcoins have seemingly struggled during this surge.
Mid and low cap tokens witness massive loss against Bitcoin
Even though most altcoins have always been known to follow the pattern of Bitcoin during every price surge but that was not the case this time. Despite Bitcoin opening the market to a price surge, the digital assets failed to capitalize on that move, which led to the increase in market dominance mentioned above.
Ripple has had to endure a disappointing trading session as the digital asset visibly lost close to 11% of its value against the leading digital asset. Other digital assets that have lost noticeable values are Litecoin, which saw a loss of 6%, Bitcoin Cash with a loss of 8%, and Binance Coin with a loss of close to 5%. Cardano sums up the list after the coin left the previous surge that it saw across the weekend to register a 5% loss against Bitcoin in the market.
Despite several mid and low cap coins showing promise, most of them have gone under since the rise in the price of Bitcoin began. With Bitcoin presently in uncharted territory, coins like OKB, Stellar Lumens, and Energy Web Token saw a loss of 17%, 13%, and 13%, respectively. Others include Huobi and Waves Token that has both seen a loss of 11% each.