Bitcoin gained new life on Friday as it outran Ethereum in increment rate which has not been since in a number of weeks. The most recent rally is rubbing off on other cryptocurrencies in the market as some of them are posting double figure increases within the last 24 hours.

Regaining Lost Ground

As reported by CoinGecko, Bitcoin has topped by 10.2% today as of the time of putting this report together. It trades at $21,159 after breaking the significant $20,000 psychological area. Bitcoin had been held down under the $20,000 line since the beginning of this week. Right now, it is not certain what the catalyst behind this Bitcoin rally is but it might be connected to the Dollar’s fall.

BTC/USD price chart. Source TradingView

It is impressive that Bitcoin has gone beyond Ethereum now in spite of the fact that it lost a lot of ground to Ethereum since the middle of July. Although the ratio between Bitcoin and Ethereum reached a new high this year at 0.085 just this week, Ethereum is now dragging slowly behind. Ethereum currently trades at $1,723, increasing by 6.5% on the day.

The leading cryptocurrency now leads the market even though the hype around Ethereum’s long-awaited Merge puts the market in some sort of frenzy. The historical dominance Bitcoin has in the crypto market has now recovered from the unprecedented support level of 39%. Making that much impact against ETH at this time is remarkable.

The latest display from Bitcoin seems to have swept throughout the market to pull other tokens up. The ATOM cryptocurrency is possibly the biggest beneficiary as it added over 22% within 24 hours. 

Sweeping the Market

Although Bitcoin’s rally might have an influence on ATOM, yet, the momentum might also have been internally generated. The ATOM platform has announced an upcoming upgrade to ATOM 2.0 for later in the month. That could also have engineered the interest of investors in the token. 

The ATOM 2.0 is designed to have some adjustments like an inflation reduction mechanism. 

Osmosis is another project that is benefiting from the Bitcoin surge. The decentralized crypto exchange jumped by 17.3%. 

Cardano and Solana also added 5% and 6.5% respectively. Other crypto assets that had been groaning in the bearish season also latched on to the recent gains. Zcash and Filecoin recorded double figures.

The US Dollar index ascended to 110.7 on Wednesday despite the Dollar’s weakness for most of the week. There was less demand for the Dollar on Thursday after the ECB announced it would raise rates by another 75 basis points.