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⚡Bitcoin's dominance hits three-year high🛣

Croxroad

17 Oct 2024 — 4 min read

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🍑 Bitcoin Hits $67,800

Bitcoin's market share has surged to its highest level since April 2021, as the cryptocurrency's price continues to climb in a market where altcoins remain subdued. On Oct. 15, Bitcoin's dominance reached 58.77%, marking a three-and-a-half-year high, while its price touched a 10-week high of $67,800. Despite a sharp retracement to $64,880, Bitcoin quickly rebounded to trade just above $67,000, with a market capitalization of $1.32 trillion. This dominance has historically signalled difficult times for altcoins, many of which either remained flat or declined as Bitcoin gained 2.5% on the day.

Despite Bitcoin's recent surge, some analysts believe its dominance will soon diminish. Crypto figures like ICT Crypto founder Benjamin Cowen and investor Coach K Crypto predict that Bitcoin’s dominance could top out at 60% before declining. They suggest this drop would pave the way for altcoins to experience a rally, with Cowen anticipating that altcoins will "get a taste" once Bitcoin's dominance falters. Analyst Moataz Elsayed has also forecasted an imminent decline in Bitcoin’s dominance, predicting the onset of altcoin season. Meanwhile, the ratio between Ether and Bitcoin has fallen to its lowest level since April 2021, further emphasising the muted performance of major altcoins.

Institutional interest in Bitcoin remains robust, particularly with U.S. spot exchange-traded funds (ETFs) seeing significant inflows. On Oct. 15 alone, $371 million was funnelled into these funds, bringing total inflows over the past three trading days to more than $1.1 billion. As Bitcoin approaches the key psychological level of its 2021 high at $69,000, many are watching closely to see whether the momentum can sustain, even as altcoin enthusiasts hope for a shift in market dynamics.

🎬 Tesla Moves Bitcoin To New Wallets

Nearly all of Tesla's Bitcoin, after two years of inactivity, has been moved to unknown wallets. According to Arkham Intelligence, the electric car company's wallets transferred approximately $765 million worth of Bitcoin on Tuesday, leaving only about $6 in the original wallets. These new wallets are not associated with any known crypto exchanges, suggesting there is no immediate plan for Tesla to sell the assets. Decrypt reached out to Tesla for confirmation but did not receive a response. Tesla had originally disclosed its $1.5 billion Bitcoin purchase in 2020, but it has since sold a significant portion, including 75% of its holdings in 2022 when Bitcoin was trading at $24,000.

Tesla's mixed relationship with Bitcoin continues to be a subject of interest. The company sold part of its holdings in early 2021 and later in mid-2022, capitalising on price fluctuations. While Bitcoin has appreciated to around $66,500 today, the recent move of Tesla’s remaining Bitcoin has sparked speculation about the company's intentions. Despite being one of the largest Bitcoin holders, Tesla's actions have been inconsistent, especially regarding their decision to accept and then halt Bitcoin payments for vehicles. This reversal, attributed to environmental concerns surrounding Bitcoin mining, left the company’s position on cryptocurrency payments unclear.

Elon Musk has been an outspoken advocate for cryptocurrencies, particularly Dogecoin, and in 2021 he hinted that Tesla might resume accepting Bitcoin if the majority of mining switched to green energy. However, Tesla has not revisited the idea of Bitcoin payments since then. As Bitcoin’s value continues to rise, the spotlight remains on Tesla and whether the company will make any further moves related to its Bitcoin holdings or adopt a more formal policy around cryptocurrency transactions.

🍩 Micropayments for Digital Goods

Bitcoin enables seamless micropayments, which are otherwise difficult to facilitate with traditional banking systems due to high transaction fees. This allows users to pay small amounts for digital content such as articles, videos, or in-app purchases without relying on subscriptions or expensive processing fees.

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