The Bitcoin price is back where it belongs, by the look of things. After a few days of the price hovering below the $4,000 mark, things have finally returned to their previous level. Right now, one BTC is valued at $4,223.67, representing a 7.43% increase over the past 24 hours. The trading volume is also holding its own fairly well, although it is a bit lower compared to yesterday. All things considered, most Bitcoin users will be quite pleased with these developments right now.
A Good Day for Bitcoin Price Speculators
Contrary to what most people would assume, the current Bitcoin market is still mainly dominated by speculators and a few market makers. That being said, it was only a matter of time until we would see the Bitcoin price go up after its latest correction. One cannot deny the market has evolved in a pretty curious direction, with major gains being noted over the past few months. Under normal circumstances, that price gain would be met with an almost equally big price correction, but that has not been the case whatsoever.
It is certainly true the Bitcoin price went down a fair amount a few days ago. Going from nearly $4,400 to $3,900 and lower over the course of a few days isn’t all that promising by any means. However, we have seen far more volatile Bitcoin price swings in recent years as well, which makes this one pale in comparison. Moreover, it also allows the price to rebound with relative ease, which is what we are seeing right now. With just a small nudge in trades, the Bitcoin price increased by 7.43% over the past 24 hours.
The bigger question, as always, is where the money comes from and how things will evolve in the future. It appears Poloniex is bringing in most of the volume, followed by Bitfinex and Bittrex. Two out of the top three trading markets are related to the XRP/BTC market, which isn’t entirely surprising right now. Fiat currency exchanges claim spots 5 through 9, including KRW, CNY, USD, and JPY markets. Once again, there is no EURO market in the top 10, and it doesn’t appear there will be any for the foreseeable future. That is somewhat disheartening, but it has been the way things go in the Bitcoin world for some years now.
Interestingly enough, the Bitcoin price rebound isn’t affecting the Bitcoin Dominance Index all that much. Right now, Bitcoin’s dominance sits at 45.4%, even though it has the largest market cap by quite a margin. Then again, no one can deny Bitcoin is and will remain the world’s largest cryptocurrency for quite some time to come. Even though the Dominance index isn’t as high as some people would like to see, the overall cryptocurrency market cap has grown to over $153bn.
Nearly half of that value still belongs to Bitcoin alone, despite there being around 1,000 different cryptocurrencies and assets tracked on CoinMarketCap right now. Do keep in mind thousands other currencies exist as well, even though they are not necessarily on CMC. There is little reason to track useless currencies and assets, as not every creation brings any value to the table whatsoever. It is hard to rival Bitcoin in this regard, as it will always maintain the first-mover advantage.
Moreover, it is once again more profitable to mine Bitcoin compared to Bitcoin Cash. Although this temporary profitability switch hadn’t affected the Bitcoin network all that much, there is no reason for miners to mine BCH right now. In fact, it is 137.6% more profitable to mine on the original chain. The latest difficulty adjustment for the Bitcoin Cash network hasn’t done miners any favors, to say the least. Going from being 140% more profitable to mine to negative digits in quick succession is not a development BCH supporters were looking forward to.