After touching the USD 4,000 level less than a week ago, bitcoin (BTC) rallied around 50% and is now trading above USD 6,000 again.
At pixel time (18:39 UTC), bitcoin is trading at c. USD 6,249 and is up 22% in a day, erasing all its weekly losses. The price is now up 2% in a week but it is still down 40% in a month.
BTC price chart:
While all the top 100 coins are in the green today also, some major altcoins even outperformed BTC. Bitcoin cash (BCH) is up 29%, binance coin (BNB) – 24%, and tezos (XTZ) – 25%. Ethereum (ETH) is up also 22%, but is still down 2% in a week.
The total market capitalization jumped by 21%, to USD 177 billion.
However, bitcoin dominance, or the percentage of the total market capitalization, has slightly increased, surpassing 64%, where it was last week.
As reported, after a major market crash last week, BTC at least today is somewhat showing its power as a hedge against risks inherent in fiat currencies and the broader financial system. Meanwhile, European, U.S. stocks are also moving up today – the S&P 500, Dow Jones indices advanced around 2%, Nasdaq 100 – 3.7%.
“With all the recent market turmoil it’s easy to get caught up in the daily volatility and forget to zoom out. Four-figure price swings, while consequential to expected returns and stressful as they occur, pale in comparison to the potential long-term value of Bitcoin,” Ryan Watkins, an analyst at Messari, wrote today in a newsletter. According to him, BTC competes within a massive market for store of value assets, and while it is many things to many different people, the most important thing for investors is that Bitcoin is digital gold.