Bitcoin soars above $48,000, asserts crypto market dominance
Bitcoin closed above the $48,000 barrier for the second time in 23 months on Sunday, marking a return to form for the world’s largest cryptocurrency. The pair closed the session at $48,300, though early Monday trades sent the pair back down to the flat 48k mark as of 10am GMT.
Nonetheless, bitcoin is up nearly 13% week on week, a sharp u-turn from its surprisingly poor post-ETF approval performance. One month after the US Securities and Exchange Commission (SEC) gave the nod to bitcoin-linked exchange-traded funds, the spot markets finally appear to be moving in the anticipated direction.
Ark Invest’s ARKB ETF became the latest bitcoin ETF to net more than $1 billion in assets under management, joining BlackRock’s iShare Bitcoin ETF (IBIT), the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Grayscale Bitcoin Trust (GBTC). Though GBTC’s substantial outflows (over $6.3 billion per the latest data) have skewed the numbers, net inflows into the bitcoin ETF market currently exceed $2.2 billion, creating buying momentum on the spot markets.
Bitcoin dominance – a measure of its share of the global cryptocurrency market capitalisation – has surged higher as well, measuring 54%, up from 52.5% this time last week. Though the second-largest cryptocurrency Ethereum (ETH) also had a bullish weekend, it suffered a 2% fall against the US dollar this morning.
In the wider altcoin space, altcoins have added high-single-digit gains over the past seven days, while others have stuck to the mid-single-digit range. The DOGE memecoin has underperformed, adding just 1%.
Analyst comment
Positive news: Bitcoin soars above $48,000 and asserts crypto market dominance. Bitcoin is up nearly 13% week on week and the net inflows into the bitcoin ETF market exceed $2.2 billion, creating buying momentum on the spot markets. Bitcoin dominance has also increased to 54%.
As an analyst, the market is likely to continue its upward trend as Bitcoin’s strong performance and increased dominance boost investor confidence. Altcoins may also experience moderate gains, but DOGE may continue to underperform.
