Bitcoin Dominance Surges 5% in 2023: Open Interest, Hash Rate Increase
• Bitcoin’s [BTC] dominance has grown by 5% since the start of the 2023 trading year.
• According to LunarCrush, there are now more people talking about Bitcoin than there were when its market cap was at its current level.
• The surge in Bitcoin’s dominance and price in the last 27 days has been accompanied by an increase in Open Interest of 63%.
The cryptocurrency market has been on a tear since the start of the 2023 trading year, and with it, the dominance of Bitcoin [BTC] has been on the rise. At the time of writing, Bitcoin’s dominance stands at 44.18%, up 5% since 1 January. This growth in Bitcoin’s dominance has been accompanied by a surge in its price and increased interest in the leading crypto asset.
Data from cryptocurrency social analytics platform LunarCrush revealed that the spike in BTC’s dominance and its price in the last 27 days has culminated in a spike in discussions around the king coin. According to LunarCrush, „there are actually more people talking about $BTC now than the last time it was at its current market cap.“ This suggests that the euphoric sentiment among investors and traders may be nearing a peak, and a drawdown in price may follow.
However, an assessment of BTC’s performance on the daily chart reveals that the uptrend remains strong. The Open Interest, which is a measure of how many traders hold open positions in Bitcoin, has been in an uptrend since the beginning of the year and has increased by 63% in the last month. This suggests that more traders are taking on long positions in the crypto asset, signalling a bullish sentiment in the market.
In addition to this, Bitcoin’s hash rate has also been steadily increasing since the start of the year. This suggests that miners are increasing their activity and that the network is still secure. All these signs point to a strong Bitcoin market, and it is likely that its dominance and price will continue to rise in the coming weeks.