• The social dominance of Bitcoin (BTC) has grown tremendously since the start of the year and its price may continue to increase as bullish sentiment lingers.
• Data from cryptocurrency social analytics platform LunarCrush revealed that the spike in BTC’s dominance and its price in the last 27 days has led to an increase in discussions around the king coin.
• An assessment of BTC’s performance on the daily chart revealed the uptrend remained strong, with Open Interest increasing by 63% in the past month.
The start of the 2023 trading year saw a rally in Bitcoin’s [BTC] dominance in the market, with its market share increasing by 5% to 44.18% at press time. This growth in the cryptocurrency market was further highlighted by cryptocurrency social analytics platform LunarCrush, which reported an increase in discussions around the king coin with its current market cap.
The rise in Bitcoin’s dominance and its price in the last 27 days has been reflected in its Open Interest, which has increased by 63% since the start of the year. Open Interest is a measure of the number of traders that hold open positions in an asset, and a rise in Open Interest can suggest that more traders are bullish on the asset’s price.
An assessment of BTC’s performance on the daily chart revealed the uptrend remained strong. The leading coin’s Open Interest kept rising and its price has been in a steady uptrend since the year began. This has led to some analysts suggesting that the king coin’s price might increase even more as bullish sentiment lingers in the market.
At the same time, however, some analysts have also suggested that the euphoric sentiment among investors and traders could be a sign that the crypto asset’s price is nearing a peak, and a drawdown in price may follow. This is something that investors should keep an eye on, as markets can be unpredictable and there is always a chance of a sudden plunge in price.
In the end, it is up to the investor to decide whether or not to invest in Bitcoin. While its current rally has been impressive, it is important to remember that there is always a chance of a sudden drop in price. Therefore, investors should always do their own research and make sure they understand the risks before investing.