A lot has been written about the movement of the price of Bitcoin in recent days. The upswing in price has seen all sorts of speculation. For example, Bitcoin has been compared to Gold recently due to its upswing in price. However, one of the emerging narratives from the rise of Bitcoin’s price is the effect it is going to have on altcoins. Alternative cryptocurrencies such as Ethereum and Litecoin are expected to be affected adversely by the Bitcoin rally.
Bitcoin News Today – Bitcoin’s Dominance To Rise To 80% If Care Is Not Taken – Bitcoin Price Prediction
Bitcoin is currently very close to regaining its all time high status of $20,000. The only thing standing between Bitcoin and this all time high is the pesky matter of the weekly resistance Bitcoin is undergoing. Despite this resistance, Bitcoin has rallied tremendously, and with its rally has come an increase in dominance. Should this rally keep on going, the dominance of Bitcoin is expected to rise, possibly as high as 80% in fact. Should this happen, the altcoin market is expected to suffer massive losses.
The altcoin market of course is already treading a dreary path with regards to its relationship to Bitcoin. The assets saw a sharp divergence in market trends that began some time in April. This divergence is a surprise because the assets are usually almost always correlated.
Bitcoin (BTC) Price Today – BTC / USD
The divergence of both assets began in April when the price of Bitcoin rallied over $1,000 in a just a couple of hours. Following this, Bitcoin dominance began a steady upward progression as altcoins diverged. The climb in dominance eventually saw it claim a 60% support in such a short time.
Right now Bitcoin is being traded at about $12,500, up about 291% from a December 2018 low of $3,200. It is currently swinging from the $10,000 price line and the resistance line of $13,800. However, despite this performance the Fear Of Missing Out (FOMO) is still driving the rise of Bitcoin upward. Should this dominance climb as high as 80% the altcoin market should expect a very strong adverse effect. Ethereum, Ripple, Litecoin should expect see a severe decimation of value as Bitcoin climbs.
The reason for this of course is quite simple. With Bitcoin climbing, crypto investors will be quickly dumping their altcoin portfolios in favour of Bitcoin.
Bitcoin News Today – Altcoins Bleed And Cause Joy In Bitcoin Camp – Bitcoin Latest Update – Bitcoin Price Prediction
Altcoins have long found it hard to present any strong alternative to Bitcoin. Bitcoin though very volatile has been around for longer, is extremely well regulated, and is held in higher esteem by governments and other institutional bodies. All these combined with the sheer brand popularity and penetration of Bitcoin has meant that altcoins have usually not performed favourably against Bitcoin.
The impending decline of altcoins therefore, is a cause for joy among Bitcoin maximalists. Especially seeing as Bitcoin maximalism has always seemed like the best path for crypto investors to walk. This view it would seem is about to be validated.