Following the news that the long-awaited spot Bitcoin ETF has been approved, BTC rose above $ 30,000.
However, as it was later understood that this news was fake, Bitcoin returned to the level of $ 28,000.
While Bitcoin's rise and fall occurred in approximately 15 minutes, leveraged transactions worth over $100 million were liquidated.
While there was activity in the Bitcoin price, the Bitcoin dominance rate, which measures its share in the total crypto market, reached its highest level in 2.5 years with 52.55% on Monday.
Speaking to Coindesk at this point, Katie Stockton, founder and managing partner of Fairlead Strategies, said that this rise in Bitcoin dominance may continue.
“According to our analysis, Bitcoin dominance reached 60% during the hazy crypto bull market days of March-April 2021.
However, this situation reversed and fell to 40%. At this point, it is likely that Bitcoin dominance will reverse this decline and continue to rise in the coming days.
Investors then converted the money from the relatively expensive Bitcoin into altcoins. Investors' return to altcoins led to a decrease in BTC's dominance rate.
After Bitcoin dominance has established itself at a higher level, it is poised to rise even higher.
Our long-term trend following indicators support further gains in Bitcoin dominance.
“At this point, we expect Bitcoin to outperform altcoins and further reverse the altcoin gains made in the first half of 2021.”
Bitcoin dominance is trading at 51.82% at the time of writing.
*This is not investment advice.