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Bitcoin is making headlines again as its market share soars to 54%, reaching levels not seen since 2021. This surge has sparked excitement among investors and the crypto community, raising questions about what's fueling the growth and what might happen next. With Bitcoin's dominance on the rise, it's important to understand what’s driving this trend and how it could impact the future of the cryptocurrency market. In this Bitcoin Price Prediction article, we'll explore the factors behind Bitcoin’s recent boost, the possible reasons for its increasing market share.
How has the Bitcoin Price Moved Recently?
As of today, Bitcoin is priced at $63,254, with a 24-hour trading volume of $92.14 billion, a market capitalization of $1.25 trillion, and a market dominance of 56.79%. Over the past 24 hours, BTC’s price has risen by 1.96%.
Bitcoin hit its peak on March 14, 2024, reaching an all-time high of $73,628. Its lowest value was recorded on July 17, 2010, when it traded for just $0.05. Since the all-time high, the lowest price Bitcoin fell to was $49,436 (cycle low), while its highest recovery since then reached $66,381 (cycle high). Currently, the sentiment for Bitcoin's price prediction is bullish, and the Fear & Greed Index stands at a neutral level of 50.
There are currently 19.76 million BTC in circulation out of a maximum supply of 21 million. The annual supply inflation rate is at 1.32%, with 257,387 new BTC created over the past year.
Why Bitcoin Price is UP?
Bitcoin’s price surge in 2024 can be attributed to its increasing market dominance and significant investor interest, both of which have strengthened its position in the crypto landscape. Rising to its highest market share since April 2021, Bitcoin’s comeback is driven by challenges faced by alternative cryptocurrencies (altcoins), allowing it to capture a greater portion of the market.
As altcoins encountered volatility and regulatory hurdles, Bitcoin's dominance jumped to 54% in the third quarter, according to IntoTheBlock data. This growing dominance indicates that investors see Bitcoin as a safer, more stable option in comparison to riskier and less-established altcoins, which has fueled its price rise.
A key driver of this uptrend could be an institutional investment, particularly from high-profile entities like Japan's Metaplanet. The Tokyo-based investment advisor recently disclosed its purchase of an additional 108.8 BTC, investing around 1 billion yen ($6.7 million).
This move has increased Metaplanet’s total Bitcoin holdings to 639.5 BTC, valued at around $40.6 million at current prices. The average purchase price of 9.2 million yen per BTC showcases confidence in the cryptocurrency's long-term value and growth potential. Such institutional buying not only injects capital into the market but also boosts investor confidence, which in turn can attract other investors and drive the price up further.
Given Bitcoin's rising market dominance and increasing institutional investments, the cryptocurrency is likely to maintain its upward momentum in the near term. The large-scale accumulation of BTC by companies like Metaplanet signals strong institutional trust in Bitcoin's potential as a store of value and an asset class.
As these investments demonstrate resilience and potentially encourage other firms to add Bitcoin to their portfolios, demand is likely to increase, further driving up the price.
Moreover, as altcoins continue to face challenges and regulatory scrutiny, Bitcoin's "safe haven" status is reinforced, making it more attractive to investors seeking stability in the volatile crypto market.
With its capped supply of 21 million BTC and a growing interest from institutional investors, Bitcoin is poised to continue its upward trajectory as it cements its role as a dominant force in the crypto space. However, external factors like macroeconomic conditions, regulatory developments, and global financial markets should be closely monitored, as they could impact the pace and extent of Bitcoin’s price growth.
Bitcoin Price Prediction: How high can the Bitcoin price Go?
Bitcoin's significant price increase of 126% over the past year reflects its strong performance relative to the broader crypto market. Outperforming 62% of the top 100 crypto assets and even surpassing Ethereum's gains, Bitcoin has demonstrated its resilience and ability to thrive amid market challenges.
Trading above the 200-day simple moving average (SMA) further reinforces its upward momentum, as the SMA is a key indicator used by traders to identify bullish trends. Moreover, Bitcoin has recorded 19 green days in the past month, meaning that the cryptocurrency has closed higher than it opened on 63% of those days. This steady upward movement, combined with its trading near the cycle high, points to sustained positive momentum.
The high liquidity of Bitcoin, considering its massive market cap, supports the potential for further price increases. With a circulating supply of 19.76 million BTC and a controlled inflation rate of 1.32%, supply dynamics are largely stable. The creation of only 257,387 BTC in the last year emphasizes Bitcoin’s scarcity and controlled issuance, which, when combined with increased demand, particularly from institutional investors like Metaplanet, can significantly drive up the price.
Considering Bitcoin's strong performance, bullish indicators, and increasing market dominance, its price has the potential to reach new all-time highs in the near to mid-term.
Trading above its 200-day SMA and near its cycle high indicates a continuation of bullish sentiment, suggesting that Bitcoin could break past its previous high of $73,628 from March 2024. If the current momentum is maintained, Bitcoin may target the psychological levels of $75,000 to $80,000 as the next milestones, especially if institutional buying continues to ramp up.
The strong fundamentals supporting Bitcoin, such as its liquidity, low inflation rate, and increasing market share against altcoins, suggest a positive outlook. Additionally, the growing adoption by large investors and businesses provides the potential for an upward price surge as the supply remains constrained and demand continues to grow.
However, the extent of how high Bitcoin can go will be influenced by several external factors, including macroeconomic conditions, global regulatory developments, and investor sentiment within the broader crypto market.
If favorable conditions persist, and Bitcoin continues to demonstrate its role as a dominant and reliable asset within the crypto space, the price could see a significant increase well beyond its previous highs, potentially aiming for the $100,000 mark or higher in the longer term. However, caution is warranted as volatility remains a natural characteristic of the crypto market, and price fluctuations can be rapid and impactful.