World’s largest cryptocurrency Bitcoin soared in price yesterday, passing the $ 10,000 mark. Bitcoin has the largest market cap among all cryptocurrencies. It reached a high of 10,358.28 at the press time today.
We can assume that Bitcoin passed the dry season and a starting for a fresh start to rise in price. The price of the coin rallied for the past few months. Finally, believers can see fate has started to change. We saw this kind of price uptrend passing 10k on the 2nd of June 2020. The highest Bitcoin price hit at the time was $ 10,200 as per the data from Coinmarketcap. The price then came back to $ 9,200 and until this hike, the price was hovering around the 9k range.
The COVID-19 pandemic pushed the market of Bitcoin for a crash. However, this uprise pushes the price back to its price before the pandemic of 10k. This means that the market has fully recovered ever since the crash.
There are different theories behind the increase in the price of bitcoin. Some speculations believe that the price hike is due to the increase in demand in DeFi aka decentralized finance. These non-custodial finance products mostly based on the Ethereum ecosystem. Ethereum also achieved its peak for this month of $ 329.32, its highest since last year in July.
Some also have another interesting theory. Altcoins are capturing the market share of Bitcoins. BTC now has only 62% market share which is lowest since last year in July according to the Coinmarketcap data. Hence before the price of BTC rise, many Bitcoins reached exchanges. This was revealed in a report published recently by Glassnode. More BTC reached crypto exchanges this moth than leaving it.
The above information makes us conclude that more traders use cryptocurrency exchanges to swap Bitcoin to altcoins.
