Bitcoin (BTC) has added nearly 100% in value since January 2023. Volatility escalated early last week.
The largest digital currency tested values above $35,000 for the first time since May 2022.
BTC then corrected below that level, and on the night of Monday, October 30, it is trading around $34,150.
Bitcoin’s dominance is at a two-year high. BTC has been the main beneficiary of the capital reallocation in favor of cryptocurrencies.
Santiment notes that the influx of capital into the cryptosphere has led to a weakening in the attractiveness of the US tech sector.
The S&P 500 index fell to its lowest level since June, while bitcoin, in contrast, reached its highest levels since last May.
BTC’s October run was accompanied by high network activity. The number of addresses sending and receiving funds daily increased to 1.08 million.
James Butterfill, head of the CoinShares research division, attributes the growth of the BTC dominance index to investors’ preparation for the launch of spot bitcoin-ETF crypto funds in the U.S. market.
The expert emphasized:
“Between October 10 and October 24, the total crypto market capitalization increased from about $980 billion to $1.236 trillion, indicating the entry of new capital into bitcoin and altcoins.”