Bitcoin has been on an upward trajectory, reclaiming a dominant position in the cryptocurrency market and overshadowing altcoins. Along with its price increase, several important metrics have spiked, signaling renewed optimism among investors.
On October 17, Santiment, an on-chain analytics platform, reported that Bitcoin whale transactions have soared to their highest level in more than ten weeks. The data shows that 11,697 transactions worth over $100,000 occurred on October 15, with a similarly high volume of activity following the next day. This spike suggests that large investors, or “whales,” are increasingly active, potentially signaling a market shift.
Bitcoin’s Growing Market Dominance
Bitcoin’s market share is also on the rise. On October 16, Bitcoin’s dominance reached 58.98%, its highest level in over three years, as reported by Tradingview. This figure marks the largest share of the cryptocurrency market that Bitcoin has held since April 2021, signaling its strength as altcoins lose ground. Conversations on social media have also shifted, with Bitcoin now dominating more than a quarter of crypto-related discussions.
Crypto experts are weighing in on this trend. ITC Crypto founder Benjamin Cowen recently forecasted that Bitcoin’s market dominance could peak at around 60% by the end of 2023. He suggested that it might even exceed this level, as altcoins continue to underperform in comparison to BTC.
Whale Activity and Market Sentiment Indicators
The increase in whale activity is a strong indicator of where the market could be heading. Santiment noted that although Bitcoin’s rally might experience a short pause due to profit-taking by large stakeholders, the overall long-term outlook remains positive. Any pullbacks are expected to be temporary as the market maintains its bullish tone.
In parallel, market sentiment has shifted toward “greed,” with the Bitcoin Fear and Greed Index hitting 73 this week, the highest level since late July. This indicates growing optimism, as investors anticipate further price gains.
Dan Held, a prominent industry analyst, noted that the recent breakout occurred as buyers began to overpower sellers. He highlighted that macroeconomic factors, including increasing liquidity and the resolution of major negative news, are driving Bitcoin’s rally. Held predicted that once Bitcoin surpasses its all-time highs, retail investors will join in, igniting the next bull market.
Bitcoin Price Approaches All-Time Highs
On October 16, Bitcoin reached a ten-week high of $68,250, representing an 11% increase over the week. Although the price dipped slightly to $67,400 during the Thursday Asian trading session, momentum remains strong. The asset is now within $1,500 of its previous all-time high of $69,000, set during the 2021 bull market.
According to crypto analyst Rekt Capital, this recent price action signals the end of Bitcoin’s recent sideways or downward trend, with a new higher high now in place.
Altcoins Struggle as Bitcoin Takes Over
While Bitcoin continues its ascent, most altcoins have remained flat or have seen declines. Bitcoin’s growing market dominance is squeezing altcoins out, as investor focus shifts almost entirely to BTC. Altcoins are showing little movement in price, leaving Bitcoin to capture an even larger share of the market.
Conclusion: Is Bitcoin on the Verge of Another Bull Run?
With Bitcoin’s dominance climbing toward 59%, whale activity increasing, and market sentiment turning bullish, the cryptocurrency may be gearing up for another major rally. Analysts suggest that if Bitcoin surpasses its previous all-time high, it could spark a full-scale bull market, with retail investors jumping in to drive prices even higher. As Bitcoin continues to expand its dominance, altcoins are finding it increasingly difficult to keep up.
