The price of Bitcoin surged past the $68,000 mark, catching the attention of Michael Saylor, the chairman of MicroStrategy, to issue a “to the moon” X post. The tweet was accompanied by an image of Saylor wearing astronaut’s clothing, and a rocket inscribed with the Bitcoin insignia.
Saylor’s declaration comes at a time when the cryptocurrency market is experiencing volatility.
The cryptocurrency market as a whole continued to rise on Wednesday, driven by Bitcoin (BTC), which increased its weekly gain to more than 12% and surpassed $68,000 for the first time since late July.
To The Moon pic.twitter.com/dcqBoN1yhI
— Michael Saylor⚡️ (@saylor) October 16, 2024
Bitcoin rose to a nearly three-month high of $68,399 in today’s trading session, on track for three consecutive days of rises. At press time, the world’s largest crypto had slightly retreated to $67,607 but is still up 1.23% over the past 24 hours, higher than the intraday’s $66,743.
Bitcoin’s “dominance,” or proportion of overall cryptocurrency market capitalization, has increased to 58.91% from 57.13% at the beginning of October.
Bitcoin dominance peaked at more than 70% during the 2020-2021 bull market, before falling to as low as 40% by mid-2021. For nearly than a year, dominance remained around those levels before bottoming out with the collapse of cryptocurrency exchange FTX in late 2022. A steady climb then began, which has continued to the present moment.
Bitcoin might experience volatility
According to Glassnode, a notable divergence between supply and demand has emerged, with the market remaining range-bound for more than seven months. Low volumes across on-chain and futures markets, combined with a HODLer-dominated environment, point to increased volatility in the foreseeable future.
Historically, tightness on the Bitcoin supply side has been a forerunner to a period of increased volatility. However, the rate of fresh capital inflows has continued to decline since the nearly $74,000 all-time high was established in March 2024.
The confidence of new investors in the market trend has also remained neutral, indicating that new buyers’ spending is not significantly different from the price of the original acquisition.
