Bitcoin price breaks $100,000

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency intended to serve as money. This form of payment cannot be controlled by a single person, group or organization, eliminating the need for third-party involvement in financial transactions.

Altcoins are all cryptocurrencies except Bitcoin, but some also consider Ethereum to be a non-altcoin since the fork occurs from these two cryptocurrencies. If this is true, then Litecoin is the first altcoin to emerge from the Bitcoin protocol and is therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price and whose value is backed by a reserve of the asset they represent. To achieve this, a stablecoin’s value is pegged to a commodity or financial instrument such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an entry and exit ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of investor interest in Bitcoin. High BTC dominance typically occurs before and during a bull run, where investors resort to investing in relatively stable, large-cap cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means investors are shifting their capital and/or profits into altcoins in search of higher returns, which usually triggers an explosion of altcoin rallies.