In 2020, BTC had only managed to cross the $ 12,200 threshold once, and briefly, over the summer. Then its price had undergone a strong correction at the beginning of September. The question is therefore whether this rise signals a new bull run, or whether the price of Bitcoin will fall again.
The rise had started in mid-October, but the biggest breakthrough came early this morning, with Bitcoin rising nearly + 4% in a few hours :
Over the last two weeks, the price of BTC takes + 14%, and finally exceeds the levels of September 1st. Its market cap is approaching 227 billion dollars .
Altcoins that do not follow for the moment
The breakthrough of the largest cryptocurrency, however, does not seem to have resulted in altcoins so far. Over the last 24 hours, Ether (ETH) has only increased by + 1%, and Ripple’s XRP has stagnated at + 0.1%. Same story for Bitcoin Cash (BCH) , with + 1%, while Binance Coin (BNB) fell by -1%, and Chainlink (LINK) lost -2.6%.
Several reasons can explain this gap between Bitcoin and altcoins. Some commentators believe the funds that fueled the DeFi craze over the summer are being redirected to BTC:
“Money is flowing from altcoins to BTC. […] This is going to give BTC a decent short term move, which will probably take it towards the $ 14,000-15,000 . At the same time, DeFi parts are oversold, which creates interesting entry points for people who take a long-term view. „
Others evoke the fall of the dollar, which makes investors turn to reserves of value like gold … And boosts Bitcoin in the process, which is generally considered more of a financial haven than its fellow altcoins.
A rise in altcoins, and Ether in particular, would confirm a basic trend for Bitcoin. It is therefore advisable to wait and see if it is a bullish technical trap , or a real bull run.