Last week, the BTC Times reported that Bitcoin was strongly outperforming altcoins as it passed $12,000. On the day of our report, the leading cryptocurrency gained approximately 2% as the price of Ethereum fell by approximately 3%.
One theory of Bitcoin's strong performance versus altcoins is based on the assumption that traders who made profits on altcoins cycled their capital into Bitcoin in anticipation of upside. Su Zhu, CEO and CIO of Three Arrows Capital, wrote on Twitter earlier this month:
This trend has continued into a second week. While Bitcoin pushed up to $14,000 on Saturday morning, altcoins continued to strongly underperform the market leader.
According to market data from CoinGecko, Bitcoin is up 2.5% on the day as of this article's writing. More than 70 of the top 100 cryptocurrencies by market capitalization are underperforming Bitcoin at this point, some by over 10%.
Bitcoin dominance as per Bitcoindominance.com has reached 80.95%, up from 78.21% at the start of October and 75.6% at the lows of September.
Bitcoindominance.com's calculations only include coins using Proof-of-Work algorithms "that are attempting to be money." Traditional measures of Bitcoin dominance include stablecoins and ICO tokens, which can be minted arbitrarily, driving dominance lower.
Analysts have been taken aback by Bitcoin's recent strength, namely because it comes in the face of a strong decline in the S&P 500.
Friday's trading session marked another loss for equity investors. The S&P 500 traded 1.25% lower during Friday's trading session.
Most stock market declines over the past few months have triggered Bitcoin sell-offs. The fact that Bitcoin is up on a day when equities have dropped strongly could imply strong demand for the leading cryptocurrency.
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