Anika Begay
Bitcoin has had a turbulent week, with significant price swings that have kept investors on edge. The cryptocurrency has endured a rollercoaster of volatility, with its value plummeting dramatically in a matter of hours before posting a strong recovery.
Specifically, the price of Bitcoin plummeted from $66,000 to a low of $49,800 on Monday, just to mid-week bouncepeaking at $62,300. By the end of the week, Bitcoin had stabilized with a solid support level of $60,000. Notably, Bitcoin has outperformed most altcoins during this volatility, reinforcing its dominance in the cryptocurrency market.
Bitcoin Increases Its Market Dominance
According to the on-chain analytics platform HolyLast week was the most volatile the cryptocurrency industry has seen since the FTX crash two years ago. Many altcoins plummeted in value, effectively erasing the price gains that bulls had pushed up in the previous month.
For example, Ethereum, the largest altcoin, saw its value drop to $2,300 for the first time in over six months. While many altcoins have struggled to recover from the broader market downturn, Bitcoin’s resilience has not only helped it regain lost ground but has also increased its market share, further cementing its position as the leading cryptocurrency.
A Resumption of bullish momentum pushed Bitcoin back above the $60,000 mark, with a rapid recovery just three days after plunging below $50,000.
At the time of writing, Bitcoin is trading at $61,300 with a market cap of $1.2 trillion, up 1% over the past 24 hours. Thus, 56.2% of the entire cryptocurrency market cap is currently in Bitcoin. According to CoinMarketCap data, this is the highest level of Bitcoin market dominance since the peak of the 2021 bull market.
Altcoin Overview
While many altcoins have begun to recover from the significant losses suffered last week, their recovery efforts have not been as pronounced as Bitcoin. XRP is a notable exception. Altcoin gains are currently being led by XRP, which is reacting to a recent ruling on the case between Ripple and the US SEC.
This legal development triggered a bullish response and pushed XRP price to $0.6372 on August 7. Although XRP has since undergone a slight correction and is now trading at $0.5923, it has managed to maintain an impressive 7.78% gain over the past week.
Toncoin (TON) also saw gains over the weekend after being listed on cryptocurrency exchange Binance. This significant event has led to an increase in TON price up over 13% in 24 hours. According to the latest data, Toncoin is trading at $6.62 and has sustained a substantial gain of 10.9% in the past week.
Featured image from Wired, chart from TradingView
