Bitcoin is thriving once again as the asset has breached over $27K during the early European trading session. As of the time of writing, BTC was trading at $27,028, representing a 6.5% increase in 24 hours. The market cap has also witnessed a 6.5% increase within the same period, taking it to $549,070,761,254 as of writing.
Despite the surge, Bitcoin’s trading volume has registered a 6.80% decrease within the same period.
Why is Bitcoin dominating while altcoins face volatility?
Bitcoin’s dominance in the cryptocurrency market can be attributed to several factors, including its large user base, strong security, high liquidity, brand recognition, and continuous innovation. The network effect of Bitcoin creates a barrier to entry for new cryptocurrencies, and its decentralized blockchain technology provides users with confidence in the currency’s security. Bitcoin’s liquidity makes it a popular choice for traders and investors, and its well-known brand recognition gives it an advantage over other cryptocurrencies.
Additionally, as earlier reported by Blockchainreporter, The BTC dominance can also be attributed to the recent US banks’ saga which could be shifting investor confidence to digital gold.
However, the cryptocurrency market is highly unpredictable, and there is no guarantee that Bitcoin will continue to dominate. New cryptocurrencies may emerge with features or advantages that make them more appealing to users and investors. Therefore, while Bitcoin currently dominates the cryptocurrency market, it is important to keep an eye on emerging cryptocurrencies and developments in the industry.