Bitcoin dominance grows as altcoins underperform

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Bitcoin climbed to $ 54,000 on Wednesday, the highest level in nearly five months. Cryptocurrency has risen by around 8% in the past 24 hours, compared to a 3% increase in ether over the same period.

Analysts have pointed to renewed optimism ahead of the US Securities and Exchange Commissions (SEC) decision on a bitcoin ETF, which could occur in the coming weeks.

In the bitcoin futures market, first-month contracts based on the Chicago Mercantile Exchange (CME) were trading at an annualized premium of 12.8% over the spot price, which is the highest level since mid- April. A futures-based ETF, if approved, could increase buying pressure for CME futures, CoinDesks Omkar Godbole reported.

For now, some analysts see continued room for improvement for BTC as momentum improves.

I have to say that looking at the daily chart the upside looks healthier this time around as momentum gradually built up from the $ 40,000 area without facing a rejection before breaking through $ 50,000, as has been the case many times before, wrote Daniela Hathorn, analyst at DailyFX. in an email to CoinDesk.

Latest prices

Bitcoin (BTC), $ 54,913, + 7.3%

Ether (ETH), $ 3,581, + 2.6%

S&P 500: + 0.5%

Gold: $ 1,765, + 0.2%

The 10-year Treasury yield closed at 1.524%

Bitcoin domination

The bitcoin dominance ratio, which measures the market cap of BTC to the total market cap of crypto, has risen to around 44%, from a low of around 40% last month. The rise in the dominance ratio reflects the recent outperformance of bitcoin over alternative cryptocurrencies (altcoins), a trend that some analysts believe will continue this quarter.

There has been new spot buying activity in BTC, and looking at the price action, we expect to see a new all-time high in the coming weeks, Pankaj Balani, CEO of Delta Exchange, wrote in an email to CoinDesk. We also expect BTC to outperform altcoins and money to turn into BTC from altcoins in the future.

Bitcoin’s dominance ratio has declined in recent months as altcoins have outperformed. During last month’s sell-off, investors may have shifted away from altcoins to bitcoin.

The story continues

Ether underperforms

Ether, the world’s second largest cryptocurrency by market cap, underperforms bitcoin. The ETH / BTC price ratio is attempting to break below 0.065, which supported the ether against bitcoin in August. Failure to hold current support could trigger a further decline towards 0.057 although oversold signals are starting to appear on the charts.

Outside of bitcoin, the market capitalization of ethers continues to dominate other altcoins. The adoption of non-fungible tokens (NFTs), decentralized finance (DeFi) and other blockchain applications have helped suggest that the market capitalization of ETH may continue to grow, according to a report from CoinDesk Research.

Altcoin balance sheet

National Bank of Georgia to test central bank digital currency next year: National Bank of Georgia, which said in May that it was exploring the possible development of a central bank digital currency (CBDC), plans to launch a pilot program next year, CoinDesks Sheldon Reback reported. The first tests will target retail use, Interfax first reported, citing Papuna Lezhava, deputy governor of the central bank. A digital lari is not a cryptocurrency, but the evolution of money, Lezhava said. It will improve the efficiency of the Georgian payment system and expand financial inclusion.

Strips Finance closes $ 8.5 million financing round for DeFi derivatives project: Strips Finance, a fixed income platform, raised the funds in a token sale with participation from Fabric Ventures, Morningstar Capital, Multicoin Capital and Sequoia Capital India, CoinDesks Andrew Thurman reported. Strips plans to launch in November with an initial feature that will enable Interest Rate Swaps (IRS) through Automated Market Makers (AMMs), the decentralized exchanges on which much of DeFi is traded.

Binance lists three more companies in Ireland as crypto regulations intensify: Binance (APAC) Holdings, Binance (Services) Holdings and Binance Technologies were all officially established in the country on September 27, according to an Irelands newspaper report Independent released Wednesday. . The move follows increasing pressure from regulators against the Binance brand, including in countries like Australia, the United States and the United Kingdom, CoinDesks Sebastian Sinclair reported. Company documents list Binance’s corporate headquarters as an accounting firm’s office above a sports shop in a Dublin apartment building, according to the report. The Binances $ BNB token was trading at $ 436 on Wednesday afternoon.

Relevant news Other markets

Most of CoinDesk 20’s digital assets ended the day higher.

Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):

Notable losers:

Algorand (SOMETHING), -3.7%

The Graph (GRT), -2.4%

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