Experts Analyse Bitcoin’s Continued Surge and Market Dominance
BTC Makes New Highs
The number on crypto briefly dipped after moving sidewards since late October but has rallied again in the past 24 hours. According to CoinMarketCap, BTC currently trades for US$ 37,829 (AU$ 58,128), a high not seen since May 2022. However, analyst Michaël van de Poppe believes this is not the end of the bull run and we may see higher highs soon.
The rise comes as deadlines for three Spot Bitcoin ETFs are approaching fast, with experts predicting further SEC delays. Bloomberg analyst James Seyffart estimates a 90% chance of approval by January 19, 2024.
Cathie Wood Predicts BTC Base Price
Ark Invest CEO Cathie Wood, in a recent interview with Yahoo Finance, reiterated her daring prediction that Bitcoin’s price could soar to US$ 600,000 (AU$ 921,790) to US$ 650,000 (AU$ 998,600) as a base level. This forecast aligns with discussions about Bitcoin’s potential and the broader crypto market. It coincides with Ark Invest’s collaboration with 21Shares on spot ETFs and anticipation of a U.S. SEC-approved spot Bitcoin ETF. Wood emphasised Bitcoin’s groundbreaking role as the first global, digital, private, rules-based monetary system, contrasting it with the current global monetary policy.
There will only be 21 million Bitcoins in the world, and if the SEC approves a Bitcoin ETF, we think institutions will think their way is clear.
Bitcoin Dominance Holds over 51%
Analyst Benjamin Cowen correctly predicted that the previous decrease in Bitcoin’s dominance and price was temporary and that there’s potential for continued gains, both in price and market influence. He suggested that Bitcoin’s pullback is part of normal market fluctuations and that its dominance is likely to return with future price increases.
As for Bitcoin dominance and altcoins, according to Cowen, there is no definitive answer as to when altcoins will reach their lowest value against Bitcoin or when Bitcoin dominance will peak. This uncertainty is underscored by the fact that every time Bitcoin’s price in USD increases, its market dominance also tends to increase. This correlation suggests two possible scenarios as per Cowen: if Bitcoin leads a bull market, its dominance will rise, and if there is a downside risk, altcoins might decrease in value in USD terms, but Bitcoin could still offer better returns.