Bitcoin (BTC) Recovers $10,000 in Rapid Price Spike
Despite the expectation BTC would dive to a lower range, the leading coin once again went through a rapid recovery, rising above $10,300.
Bitcoin (BTC) found support once again, recovering the $10,000 level, as trading volumes rose from $12 billion to $18 billions’ equivalent. BTC traded at $10,384.55, up more than 6% in the past day, with the climb starting late on Monday.
The recent price level still happens when the overwhelming sentiment for BTC is “fear”, though moving up from extreme fear about a week ago. Despite prices close to the $10,000 mark, the sentiment is similar to the bottom of the bear market at the end of last year.
After the recent price appreciation, the BTC market capitalization dominance rose to 70.1%, the highest level since the spring of 2017. The share of all altcoins, however, slid to around 13%, returning to the levels from before the big rally at the end of 2017. In 2019. BTC established itself as one of the most successful assets, outpacing most other projects that made big promises.
The other reason for the BTC price dominance is the general disappointment with hot new projects, which were slow to deliver the promised results, and the coins and tokens quickly lost liquidity and trading positions.
The current rally happens as more than 72% of BTC volumes are in the pairing with Tether (USDT). The coin keeps up its activity, despite slightly lowering its circulating supply, from 4.043 billion coins to 4.006 billion. Altcoins with more significant USDT inflows are also outperforming the rest.
Trader Peter Brandt sees the recent strength of BTC as evidence that altcoins are the lesser investment, offering gains only as an anomaly, while BTC remains the engine of growth.
Skeptics, however, see the recent recovery as a concerted intervention to keep BTC within a high enough range. The rally in September followed August’s net loss, when BTC marked a closing price in the $9,500 range, down from the $10,300 level closing price at the beginning of the month. BTC is still up more than 300% since the lows last December, and there are renewed hopes for a rally and new yearly highs.
The high prices also mean mining is highly profitable, leading to a rise of hashrate to a record above 86EH/s.