Bitcoin dominance rises as Ethereum breaks away from the altcoin park

Fibo Quantum

  • For the first time since March 6, 2018, BTC 30-day historical volatility broke above 100%.
  • Ethereum is becoming “a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin.”

The emergence of Facebook’s Libra has redirected focus back on Bitcoin from both the mainstream media and the regulatory landscape. More so, there has been a significant shift in coin relationships according to a report by SFOX research team.

In fact, the United States President commented on the Libra project and Bitcoin on July 12 saying “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” Trump added that “Facebook Libra’s “virtual currency” will have little standing or dependability.”

These tweets coupled with Facebook Inc.’s hearings at both the US Congress and Senate have resulted in increased Bitcoin volatility from 89.33% on July 10 to 100.30% on July 17. This “makes the first time BTC 30-day historical volatility has surpassed 100% since March 6th, 2018.”

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The SFOX report notes that Bitcoins market share has taken center stage in the crypto space amid the probe into Libra. Bitcoin dominance has increased significantly from 50% around March to range between 65% and 75% at the moment.

“Leading altcoins — ether (ETH), bitcoin cash (BCH), litecoin (LTC), bitcoin SV (BSV), and ethereum classic (ETC) — were all less correlated to BTC than they have been in recent months, whereas they were all highly correlated to each other,” SFOX states in the report.

In addition to that:

“Correlation data reinforce the idea that investors and traders may still be much more attuned and responsive to Bitcoin rather than other altcoins, especially when the crypto sector enters the national regulatory spotlight.”

While commenting on the correlation of Ethereum correlation with Bitcoin, the team notes that ether is gradually becoming “a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin. If this trend continues, it may become inappropriate to categorize Ethereum as an “altcoin” on a par with other cryptoassets that are not Bitcoin.”

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