- Stellar Lumens and two other altcoins outperform Bitcoin
- BTC’s dominance is on the Decline
- Stellar, Cardano and Tezos have led the broader market rally
Stellar Lumens News Today – altcoins on the digital asset market have been on an upward movement. The market leader Bitcoin has fallen short. Tokens like Stellar, Cardano, and Tezos have all outperformed the top digital asset Bitcoin. BTC began the session this week by above the $12,000 mark before correcting down to the $11,400 area. BTC’s 2020 robust rally highlights its fresh appeal as the haven digital asset.
BTC has caught several bids along with gold in recent weeks. But in the crypto market, it is the opposite. Bitcoin has given lost ground to altcoins. The tokens, Cardano, Tezos, and Stellar Lumens have all led the broader rally in recent days. This price action has pushed Bitcoin’s dominance down to reach a 12-month low.
Generational Split in the Choice for Safe Haven Assets
According to research conducted by JP Morgan Chase, there is a generational split in the choice for haven assets. They found that boomers prefer gold to hedge against the USD (which is free-falling) and the effects of the liquidity injections from the FED (Federal Reserve). On the other hand, Millennials are buying BTC.
Although the two assets (Gold and Bitcoin) may be sustained by the similar macroeconomic forces, they are in different stages in their market cycle. Gold is trading at highs of $2,000. Bitcoin is 36% off its peak position. Tezos has surged by 17% this week. Cardano has risen by 6% after it was singled out and praised by Weiss Crypto Ratings. Only a section of altcoins is benefiting from the ongoing buying frenzy. Ethereum Classic dropped by 7% after the recent hacks. XRP is experiencing losses too.
Prospects for The Week Ahead
One of the leading crypto investment firms Grayscale Investments has launched a nationwide marketing campaign this week. The firm has been broadcasting a positive message on digital assets to millions of TV viewers in America. While the impact of Grayscale’s previous campaign in August last year was hard to measure, the recent one could result in a new class of traders. On the macroeconomic front, the rift and deterioration of relations between the US and China could benefit Bitcoin.
Since the market is feeling the impact of the fallout following several sanctions levied against Hong Kong and China. Movement in the USD could impact the crypto market as well. The greenback has dropped for seven weeks consecutively. Morgan Stanley has shifted its stance to neutral by completing its short position. If the USD resurges, it could bring bearish pressure for Gold and Bitcoin.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.