Bitcoin has always been the #1 cryptocurrency by market volume, forever at the top, and at current values, it looks like it’s going to hold its place for much longer. The recent price decrease of Bitcoin has seen an even larger drop by altcoins, which is something worth thinking about.
Altcoin’s have been forever speculated to be the next spike, after Bitcoin goes up, the other coins most surely will see an increase. But investors seem to have become smarter this time around, with Bitcoin shooting up leaving altcoins to barely climb at all. The price of Bitcoin has undergone a decrease that so far can be seen as two waves. It reached a value of $11,300 on July 11 and traded at that level for almost two days. Another decrease saw it reach as low as $10000.
Since the latest ‘bitcoin boom’ began in early April, the best-performing large cap currencies have been Binance Coin (BNB), with a modest gain of 50% , and Ether (ETH), whose price roughly doubled during that timeframe. Bitcoin dominance has also grown, giving Bitcoin a wider lead over the rest of the market. After comprising roughly 51% of the crypto market in April, BTC now accounts for 66% of total market capitalization.
BTC tweet volume is at its highest level since December 2017, accounting for 64% of cryptocurrency mentions on Twitter. After seventeen months without crossing the 60% mark, Bitcoin tweet volume reached that level at least three times last month. This seems to still be the Bitcoin season, with it continuing to dominate.
IEOs have failed to attract anywhere near the same level of investment. As the Morgan Stanley report highlights, exchange-launched tokens attracted only $0.2bn of investment in May – a pittance compared to figures raised even at the end of the ICO boom. Unlike most altcoins, Bitcoin is unique in that it already has a well-established use case: it’s the main currency for crypto exchanges, and acts as a store of value – like gold – which is not correlated with traditional markets.
For now it seems like the altcoin rally is still far off, and the market has wisened up about jumping on the grand promises set up by the altcoins in the market, tending to be more wary of who they choose to invest in.