How Will a Higher Bitcoin Dominance Index Affect BTC Price?


Bitcoin

Bitcoin (BTC) had an excellent run in the first half of 2019 and looked like it could regain the highs that it had reached back in 2017. However, the month of July proved to be a reality check as the price of the token oscillated around $10,000. August started off in much better fashion as many investors got into Bitcoin as a form of hedge against the global economic uncertainties.

Key Analysis

That being said, the cryptocurrency has not been able to regain the momentum that it had displayed in the first half of the year and many predictions now seem a bit far-fetched.

Tim Draper, the noted cryptocurrency expert, had stated that 2019 was going to be the year in which Bitcoin was going to go on an unprecedented rally and eventually touch $250,000 per coin at some point in 2022. However, Draper has now revised his stance that if Bitcoin is going to reach those levels, then it would not be any time earlier than the first quarter of 2019. It goes without saying that the revision of such a prediction perhaps proves that Bitcoin is not going to get to significantly higher levels at any point this year.

>> Litecoin (LTC) Progress is Solid: Charlie Lee Disputes Fears

On the other hand, it is also important to note that the gains that Bitcoin has generated this year are nothing to be sniffed at. At one point, the price of the token crashed to $3,000, and after several attempts, the coin started on its remarkable rally this year.

At this point in time, the price of Bitcoin is $11,500, and it is, without a doubt, a respectable price. However, there are plenty of traders who are convinced that Bitcoin and the wider crypto market are primed for a significant bull run this year. Many even point to the cyclical nature of the traditional financial markets in order to illustrate their point. Only time will tell if their prediction is correct.

Featured image: DepositPhotos © timbrk

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