Price Analysis

Many Bitcoiners Are Now Farmers-Will Bitcoin ever Sustain above $12000

Highlights

    Bitcoin losing its dominance, records levels below 57 percent.

    According to a report, $500 million in BTC already tokenized for DeFi

    Regardless of the dump, the digital asset is expected to bounce back soon.

Bitcoin’s Dominance shrinks after touching $12000 again

The growing popularity of the DeFi space and the frequent launch of the token has shifted the focus of investors away from Bitcoin. Bitcoin suffered a loss in its dominance which recorded the level below 57 percent.

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Bitcoin also witnessed a steep dump of more than $500, a sharp decline from over $12000 to less than $11,400 with nearly 5 percent negative change. The buyers failed to sustain the upside momentum will lead to a major breakdown of the digital asset. 

Currently, the primitive asset is priced at $11,371.46 at the reporting time with a negative change of 4.62 percent. However, a major breakout could be expected with many jump to invest as the price is crashing to low levels. 

Millions of BTC poured in DeFi Space

Many tokens in the DeFi space were launched and they performed well in the past week. Therefore the investors possibly transferred their BTC into the DeFi space. According to a report published by Messari Crypto, nearly $500 million worth of bitcoin has been ported over to Ethereum in 2020.

As per the report, only 0.3 percent of the total BTC on Ethereum and DeFi, the DeFi space is on fire. Therefore, the decentralized bridge between the two chains could be a major factor for a bull run for both. Moreover, the projects that bring Bitcoin to DeFi would emerge as leaders in the crypto space.

Therefore, with major BTC influx in the DeFi space, more and more Bitcoiners are now turning into farmers. 

Will BTC regain and maintain above $12000 ever?

Bitcoin yet again failed to maintain above $12000 and slipped below $11500. With the plunge into the lowest level, less than $11200, the day resulted to be a little strong for the USD. However, some of the analysts predict it as a ‘short-term bounce’.

Full-time crypto trader Crypto Michael well before that the investors could pull out for some profits which could result in a steep dump. With reaching the lowest level, the digital asset could pump up with the increase in buyers.

On the contrary, The Moon Carl has predicted that all the BTC influx in the DeFi space could possibly flow back. However, many responded that not all the pumped money would return as investors could hold back some share in the DeFi space.

Collectively, Bitcoin’s dominance is declining, but it hardly matters as it’s price does not depend on it. Many other altcoins paired with BTC are also growing.

In a nutshell, bitcoin witnessed a very nail-biting day with big and steep breakdown with a possible bounce back underway. With the correction phase, will the largest cryptocurrency again cross and maintain $12000? 

Possibly YES as some of the analysts think so!!

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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