2019 has so far been very underwhelming for the biggest altcoins, such as Ethereum and Ripple’s XRP. However, their increasing price correlation with Bitcoin could be a surefire sign that an alt season is already in the pipeline.
A precursor to another alt season
According to Bloomberg data, the prices of top altcoins have started moving in tandem with Bitcoin. Considering that the crypto king has already experienced a headline-grabbing rally in 2018, it might mean that altcoins will soon shine too.
image by bloomberg.com
Ethereum, the number one alternative cryptocurrency by market capitalization, has the highest correlation with Bitcoin. ETH gained 40 percent this year, which pales in comparison to BTC’s 175 percent.
According to Ed Moya of Oanda Corp., this increasing price correlation can be attributed to ongoing market consolidation. Bitcoin and top altcoins mostly have been in limbo since enduring a massive sell-off on Aug. 14.
Volatility has eased quite a bit over the past couple of weeks as regulatory concerns and future hurdles have somewhat eased.”
Bitcoin devouring altcoins
Bitcoin’s dominance is currently sitting at 69.1 percent after failing to breach the 70 percent mark on multiple occasions over the recent months. Nevertheless, Bitcoin still occupies its biggest chunk of the market share since March 2017.
According to CoinCorner CEO Danny Scott, altcoins might have lost their luster for good. As of now, BTC is responsible for 90 percent of the exchange’s transactions.
Altcoins are slowly dying out in respect of interest when compared to Bitcoin,” he said.