Bitcoin has built significant momentum over the past 24 hours, surpassing the $11,000 mark. The majority of alternative cryptocurrencies in the market have performed poorly against bitcoin, as the most dominant cryptocurrency in the market continued to lead a strong rally.
Against the US dollar, bitcoin has increased by nearly 8 percent since February 17, achieving $11,200. Apart from a few small cryptocurrencies such as Aion, bitcoin has been the best performing major cryptocurrency in the market.
Every top 20 cryptocurrency in the global market has recorded a loss against bitcoin in the past 24 hours, with Ethereum’s native cryptocurrency Ether demonstrating a 5 percent loss, Litecoin recording a 7 percent loss, and NEO recording nearly an 8 percent loss against bitcoin.
Throughout January, the cryptocurrency market experienced one of the worst corrections in history, as most cryptocurrencies declined by around 70 percent from their all-time highs (ATHs). Since early February, the cryptocurrency market has continuously recovered, but major cryptocurrencies with robust infrastructures, community support, and network effect have had an edge over other alternative cryptocurrencies.
During a recovery period, wherein new investors and traders enter the space as the market begins to see gains, cryptocurrencies with strong network effect such as bitcoin has a strong advantage over other alternative cryptocurrencies. Most investors who exited the market as the price of cryptocurrencies fell did it out of panic and fear.