Bitcoin’s price saw big volatility on the day, briefly hitting new all-time highs with a high of $105,581.85 and as low as $103,646.36. The largest cryptocurrency by market capitalization is trading at $103,867.5 as of writing time, down more than 1% in the past day. This price movement comes against the backdrop of a significant decline in trading volume, indicating a possible change in market sentiment.
According to CoinMarketCap, Bitcoin’s current market capitalization is $2.18 trillion. Bitcoin makes up roughly 63.9942% of the entire crypto market.
Bitcoin's Intraday Performance
As the day progressed, Bitcoin’s price moved up and down, within a generally tight range. This daily high of $105,581.85 shows just a small window of bullish momentum. This was soon followed by a drop to a bottom of $103,646.36, demonstrating the existence of strong selling pressure. These price swings are a persistent reminder of the current volatility and fragility in the Bitcoin market.
At the time we went to press, price was in a consolidation phase just above $103,867.50. This indicates a favorable balance between buyers and sellers in the immediate future.
Trading Volume Decline
Perhaps most shocking of all is the precipitous decline in intraday trading volume for Bitcoin. The new current volume is $47.68 billion, down more than 17% from yesterday. This drop in trading volume might be due to more than one reason. Whether it be lessened investor interest, consolidation in the market, or the general shift of investor focus to other cryptocurrencies.
Lower trading volume can amplify price volatility. This has made Bitcoin much more vulnerable to extreme price movements. It is another sign of deteriorating overall market liquidity.
Market Capitalization and Dominance
Even with the recent price decrease, Bitcoin’s market capitalization is still significant at $2.18 trillion. This figure puts into sharp relief Bitcoin’s status as the most valuable cryptocurrency, by far. At the time of writing, Bitcoin’s dominance of the crypto market is at 63.9942%. That means that Bitcoin still represents a huge amount of the total value of everything crypto.
Even a minor dip in dominance could be an early indicator of increasing enthusiasm for competing cryptocurrencies, or altcoins. This could mean that investors have been seeking to diversify their portfolios to capture higher growth potential.
