The Bitcoin price has been manifesting a massive upswing for the past few days and currently has triggered a beast mode to reach beyond $30,000. The reason is the growing dominance of the star crypto within the markets, which has clinched 50% for the first time in the past 12 months. Hence, this indicates that the majority of investors are now more focused on the BTC price and could be swapping other altcoins for the flagship crypto.
But what changed all of a sudden? Why was the liquidity flow back to Bitcoin?
Simple, major players like BlackRock, Invesco, & WisdomTree apply for Bitcoin spot ETFs, while Fidelity, Citadel, and Schwab are set to launch a crypto exchange. This lateralised soon after the SEC tightened its grip on the crypto space and sued Binance and Coinbase. Till then, the BTC price was feared to lose out and drop back to $20,000, marking fresh bottoms for the year.
Ever since the 2021 bull market, the markets, specifically Bitcoin, have required a catalyst to propel them high or drop below crucial levels. However, no specific event or reason fueled the rally, but the market was in a euphoric phase. Further, when the 2022 bear market began, multiple events triggered a significant bearish trend that has continued to this date.
Investors still continue to be under immense fear and uncertainty as they require positive events to be bullish on crypto for a long time. Considering the current market conditions, the Bitcoin price has sliced above $30,000 and continues to soar as multiple events trigger a massive run. However, once the excitement of the investors waned, the price was set to witness a significant plunge.
Therefore, the crypto market continues to be dependent on external factors. Hence, it is subjected to a rise or drop depending on the positive or negative events happening within the crypto space.