Bitcoin Breaks above $10,000; Altcoin Performance Even Better
Bitcoin rose above the $10,000-mark last Sunday while some Altcoins gained more than 20 percent in value. January was already a great start into the year; could February become even better?
On Sunday, Bitcoin broke through the psychologically significant $10,000-mark for the first time since September and climbed to $10,129. This morning (February 10th) the price was back at $9,821.
Bloomberg analyst Mike McGlone is positive about Bitcoin’s 2020 outlook. The asset has gained more than 40% since the beginning of the year and McGlone believes the indicators for further upwind are “favorable.” He points to the lower supply due to the upcoming Bitcoin halving as well as increasing Bitcoin adoption, as indicated by the growing number of active Bitcoin wallets.
Bitcoin’s bull run over the weekend was also partly driven by Chinese demand. On the Chinese microblogging service Weibo, Bitcoin investments were a hot topic shortly after the $10,000-mark had been taken. Some analysts also believe investors are fleeing into blockchain-assets as they fear a worsening of real-economic conditions due to the outbreak of the coronavirus.
Altcoins surging; Bitcoin dominance declining
Altcoin markets had also seen some stellar performers last weekend. Especially Tezos (XTZ) was among the winners. The token went up more than 20% within 24 hours, reaching a price of $2.75 on Sunday.
Some Altcoins had outperformed Bitcoin significantly over the past weeks. Ethereum currently trades at $230, which represents a 78% return since the beginning of the year. Litecoin, EOS, and Binance Coin are up 70-90%. Bitcoin Cash and Bitcoin SV even went up 120% and 250% respectively. As a result, Bitcoin’s market dominance in terms of total market capitalization share is now at 64%, the lowest level in seven months.
Ethereum-DeFi hits $1 billion
Another milestone: The DeFi (“Decentralized Finance”) ecosystem on the Ethereum blockchain has locked more than $1 billion in capital last week, meaning DeFi-applications are growing faster than Bitcoin.
“The focus of crypto investors could move away from Bitcoin and towards the Altcoin market in the coming months and years,” says Frank Wagner, CEO of INVAO. “There are many promising projects, especially in the space of decentralized finance applications, which could create enormous economic value.”