Bitcoin price is less than 5% away from its all-time high as BTC market capitalization peaks
- Bitcoin price is trading within the upper range of the November 2021 supply zone as crypto markets rally.
- BTC could reclaim its $69,000 peak, a level last seen in November 2021, with the potential for an extension to $70K.
- The pioneer crypto’s market capitalization has already set a new record, breaching the $1.3020 billion threshold.
Bitcoin (BTC) price is steadily edging towards its 2021 peak, just a tad away as markets show optimism. Trading activity remains sky-high with all signs pointing to the pioneering cryptocurrency reclaiming its peak.
Bitcoin inches closer to its peak price
Bitcoin (BTC) price is trading with a bullish bias, reaching for the $69,000 all-time high as cryptocurrency markets flash green. While BTC is yet to reclaim its peak price, the pioneer crypto’s market capitalization has already hit a new milestone, breaching its November 2021 peak of $1.3020 billion.
The optimism in the Bitcoin market has seen BTC surpass Meta Platforms, the parent company of giant social media platform Facebook, in market capitalization metrics. Reports also indicate that BTC continues to dethrone currencies across the globe.
Specifically, BTC has recorded a new all-time high in 70% (14 out of 20) of the G20 currencies. However, all eyes continue to watch its value against the US dollar (USD).
The host of CNBC’s Mad Money, Jim Cramer, attributes this to traders buying BTC as a hedge against fiat currencies.
JUST IN: Traders are buying #Bitcoin as a hedge against fiat currencies, states Jim Cramer pic.twitter.com/GZmKAPhER1
— BlockNews.com (@blocknewsdotcom) March 4, 2024
Amid frothing trading activity in the market, Coinbase Exchange has crashed again, with users complaining of latency issues and zero balances. However, the platform’s customer support has assured users of the safety of their funds.
Also Read: Coinbase exchange down again as Bitcoin price nears all-time high
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Bitcoin price outlook as BTC market cap peaks
Bitcoin price is trading within the upper midrange of the November 2021 supply zone between $60,522 and $67,525. If BTC manages a candlestick close above the midline of this range at $64,023, it would confirm the continuation of the uptrend.
This could set the tone for the continuation of the trend with BTC likely to reclaim the $69,000 peak. In a highly bullish case, the pioneer crypto could extend the gains to $70,000, marking a new all-time high.
BTC/USDT 1-day chart, BTC market capitalization 1-day chart
Conversely, profit-taking could see Bitcoin price drop, with the supply zone holding as a resistance order block. In such a turnout, BTC could revisit the $60,000 psychological level.
Also Read: Bitcoin Price Outlook: Will BTC foray higher as BlackRock BTC ETF nicks $10 Billion AUM?
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
