Altcoins continue chipping away from Bitcoin’s dominance as capital rotation continues.
Bitcoin’s price saw subdued volatility throughout the weekend, trading within a relatively narrow range around $118K. The past 24 hours, however, have brought up a hint of revival with BTC inching closer to $120,000.
The total cryptocurrency market capitalization hovers above $4 trillion and some sectors are seeing notable gains. There’s also some interesting economic data coming up in the following days, which may stir the pot and cause greater volatility.
Bitcoin’s price has gone through a somewhat quiet weekend but the market started moving as soon as Sunday came closer to an end.
During the late Sunday evening trading hours (in Europe), the price crashed to an intraday low of slightly above $116K, which appears to have been a liquidity grab as the buyers stepped in and reversed course immediately, as seen in the chart below.
The price immediately recovered and pushed towards the previously broken $120K level, peaking at around $119,600.
This enhanced volatility resulted in around $400 million worth of liquidations across the derivatives markets, $221M of which were short positions. The bulls are seemingly in control and it remains very interesting to see if the previous all-time high level is within reach.
Meanwhile, as CryptoPotato reported, interesting economic data is coming up this week, which may cause an uptick in volatility across exchanges.
It’s critical to note that Bitcoin’s dominance – the metric that tracks its share relative to that of the rest of the market – has shrinked from 63% to 58% in the past seven days, indicating that altcoins are outperforming.
Pudgy Penguins (PENGU) is today’s best performer, noting an increase of 25% in the past 24 hours, followed by Donald Trump’s TRUMP meme coin that is up by about 11.4%.
Most of the large-cap crytpocurrencies are trading in the gree, charting increases anywhere between 1.5% and 10%. It’s interesting to see if this form of capital rotation will accelerate and cause a more considerable “altcoin season,” or if BTC is preparing to retake its captain seat once again.
