Reaching $8,000 on Tuesday morning (UTC), Bitcoin (BTC) is once again ahead of the pack, expanding its dominance to 47% of the entire capitalization of the cryptocurrency market. At the same time, most altcoins are in the red, as traders sell them to buy BTC. This mood reversal happens after BTC was stagnant for weeks, while altcoins had their small rallies.
BTC has appreciated some 19% over the past week, spiking to $8,006.91 as at 7:35 UTC from around $7,725 just five hours earlier. After some struggle earlier today, BTC has managed to hold above the $7,800 level for three hours now.
As a sign of Bitcoin’s dominance, currently trading of BTC pairs takes up nearly 34% of the market, while Tether (USDT) trading has scaled down to 18.6%, according to data from CoinMarketCap. This means that once again, altcoin gains are redirected into BTC. However, Bitfinex remains the most active exchange for trading with a 7% share, while trading against USDT on four other exchanges accounts for 17%, making some analysts raise their eyebrows. Last month, economics professor John Griffin published a paper, which revealed market manipulation through USDT tokens, claiming that Tethers boosted the price of Bitcoin in a concerted effort at key moments.
The price movements from the past few hours show that BTC is again capable of growing by leaps and bounds on days of increased activity and optimism. Korean exchanges trading against the Won once more show premium prices, with BTC already trading above $8,004, and as high as $8,012 on newer exchanges like ZB.com.
On WEX, formerly BTC-e, the headliner is trading at an extraordinary premium of $9,490.47, but an attempt at arbitrage is ill-advised, as withdrawal limits may apply.
However, for the current rally that managed to vault the $8,000 mark again, there are doubters who see BTC correcting back to $7,200. But others’ expectations are for BTC prices to keep their strength leading up to the August 10 deadline, when the US Securities and Exchange Commission (SEC) will publish its decision on the ETF proposed by the CBOE exchange operator.
After months of weak performance for BTC, the trend seems to have reversed with hopes for a much-awaited bull run.
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