Bitcoin (BTC) has done it: late in the night on June 21 (UTC), BTC rolled over the $10,000 price mark after an eye-watering and nearly unbroken runup since February.
The last time Bitcoin crossed over this mark, on the way down, was March 8, 2018 according to the Coinbase chart – well over a year ago. And the first time it crossed $10k, on the way up, was November 29, 2017 – only 17 days before doubling at an all-time high of $20,000 on the Coinbase chart.
Since the exact bottom of the chart put in on December 14, 2018, at a price of $3,128, Bitcoin has risen in price by exactly 250% at time of writing.
‘LEVEL 10 FOMO’?
The obvious question is where to go from here? According to Fundstrat managing partner Tom Lee, who spoke at the recent CryptoCompare Digital Asset Summit, the leading crypto could run to $40,000 within five months.
CRYPTO: we see 9 incremental improvements in the landscape that ultimately support higher prices.
See below… pic.twitter.com/7DSrfVjkoi
— Thomas Lee (@fundstrat) February 8, 2019
Supporting his thesis, Lee shared research from Fundstrat demonstrating that most of the macroeconomic, regulatory, and technological problems and hickups for the cryptoasset industry that were present in 2018 have almost all seen significant progress going into 2019.
— Adam Samson (@adamsamson) May 29, 2019
Another notable industry player, Tyler Winklevoss, came out yesterday on Twitter claiming that if Bitcoin blew through $10,000 (check), then it would quickly achieve a price of $15,000 shortly thereafter.
His reasoning for this was that Bitcoin is “a cheap asset until it disrupts gold, however, the second time breaking $10,000 will make it feel more ‘real’ to many people.”
Historically, altcoins (anything that’s not Bitcoin) have been heavily sold during intense Bitcoin runups, such as the one currently occurring. Indeed, altcoins paired against BTC have been dumping hard in the last few days – Ethereum, for example has lost about 6% since June 16 versus BTC.
The chart to look at here is Bitcoin’s dominance versus altcoins, or the percentage of the overall cryptoasset market capitalization that is represented by Bitcoin.
Bitcoin is currently within the critical 60-65% dominance zone, which is a resistance zone that the leading crypto would be unlikely to crack (it did not break this level even during the run to $20 back in December 2017).
We might look for a top to Bitcoin’s price rise at 65% dominance, and for altcoins to be infused with the Bitcoin earnings.