Bitcoin's (CRYPTO: BTC) price has decisively broken through the $100,000 barrier, hitting a peak of $102,482 in the early Monday trading session.
What Happened: The cryptocurrency's 3.2% jump to $102,250 is accompanied by experts citing a "classic correction completion" and an environment ripe for continued growth, while also cautioning that a sustained altcoin rally remains uncertain due to Bitcoin's enduring dominance.
The surge in Bitcoin's price has brought the overall cryptocurrency market capitalization to over $3.5 trillion, according to analysts at FxPro, the highest level since mid-December.
Ethereum (CRYPTO: ETH) has also moved up 3% to $3,736, along with altcoins such as Solana (CRYPTO: SOL) and Avalanche (CRYPTO: AVAX) which have increased 4% and 7%, respectively.
Alex Kuptsikevich of FxPro suggests this indicates that the current market is in a "classic correction completion with a resumption of the growth" and a sentiment index indicating "extreme greed" suggests active buying.
Kuptsikevich adds that "This scenario will be confirmed if the historical highs of around $109,000 are confidently breached" and expects "Bitcoin's growth to accelerate after the $100,000 mark."
Also Read: MicroStrategy Extends Bitcoin Buying Streak, Metaplanet Aims For 10,000 BTC War Chest
Why It Matters: While Bitcoin's rally has brought renewed optimism to the market, 10x Research notes that altcoins continue to face challenges.
Bitcoin's dominance, which saw a rise from 50% to 60% between January and November 2024, has hindered the performance of altcoins.
Though a brief dip to 53% sparked hope for an "altcoin season", Bitcoin's dominance has returned to approximately 55%, demonstrating its power in the cryptocurrency market, and potentially signaling "challenges for altcoins—unless the Bitcoin dominance indicator experiences another decline."
Despite Bitcoin's rally, 10x Research emphasized a quieter phase for the market. Bitcoin's dominance remains resilient at around 55%, following fluctuations throughout the year.
However, spot trading volumes have significantly dropped, with Binance's spot volume plummeting to $12 billion from a peak of $65 billion earlier this year.
Experts also pointed to the role of institutional activity in shaping the next leg of Bitcoin's growth.
Renewed stablecoin minting and increased buying from U.S. Bitcoin ETF investors are expected to fuel further market action as trading activity picks up post-holiday season.
- Bitcoin, Ethereum, Solana Institutional Investment Inflows Hit Record $44.2B In 2024, Nearly Quadrupling Previous High
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