The markets are looking painfully desperate today. As an investor it’s pretty hard to not totally worry about what we are seeing. Bitcoin has lost almost $1,000.00 in the week and it’s looking like the decline is set to continue through the weekend.
Overall, we could be entering yet another month of market depression here, something that we could do without. We aren’t asking for Bitcoin to hit $40k yet, but a price at around $10k might inspire some hope back into the community.
At the time of writing, Bitcoin is valued at $7,385.88, down 3.11%. If this decline continues, we will see Bitcoin hit $6,500.00 over the weekend. Clearly this weeks movement past $8,000.00 has provided Bitcoin too much resistance.
Not all hope is lost though
Importantly, Bitcoin dominance is riding very high, at the time of writing Bitcoin dominance sits at 48.4%. With Bitcoin dominating almost half of the entire markets capitalisation, we can be sure that a Bitcoin surge will pull the rest of the markets up with it. We have mentioned this time and time again, but the last time Bitcoin dominance moved past 50% saw a surge known as the cryptocurrency boom, a time during which Bitcoin reached $20,000.00. If Bitcoin dominance continues to rise, can we expect a second boom this year?
Perhaps so, though we can’t guarantee this.
Institutional investment is sure to increase trading volume and further boost this market capitalisation. As investment pours in, prices will surge and then, we could see a large bull run. What we need to consider is the current low price. This low price could be the turning point that inspires new investment on board.
So, not all hope is lost.
A low price, means more investment (potentially). High dominance means a stronger upwards pull should Bitcoin surge. The math adds up, so for now, we just need to wait and see what happens.