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Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise

Bitcoin BTC Market Dominance 2019

On April 23, the crypto markets took a turn that have some questioning the outlook on altcoins. While the altcoin market has been holding its own against Bitcoin, with currencies like Binance Coin posting 300 percent gains since the start of the year, the market appears to be swaying in favor of Bitcoin.

Long time cryptocurrency investors will be familiar with the the tug-of-war price movement between Bitcoin and altcoins. At times, the entire cryptocurrency marketplace buoys on positive sentiment and increased investment. However, a shifting between the pool of capital in alts and Bitcoin is also a common occurrence. For one, investors avoid the headache generated by taxes and capital gains by trading between currencies.

But for the most part, investors have recognized that Bitcoin tends to be a more price stable currency relative to the rest of the market, while also offering the ability to appreciate during periods of positive price movement–a feature that stablecoins are unable to offer. In times of bullish market sentiment, such as what is brewing for the industry at present, investors grow fearful of missing out on massive BTC leaps, such as the epic run which took Bitcoin to $20,000 in December 2017.

Despite the development interest and growth into platform currencies such as Ethereum, EOS and TRON, the marketplace for cryptocurrency continues to flow through the original cryptocurrency. Bitcoin holds a wide margin in market capitalization over the second highest coin Ethereum, a gap that is greater than $80 billion. In addition, Bitcoin market dominance has continued to climb throughout 2019, up from 51 percent at the start of the year to over 53 percent. Today’s price action has taken BTC dominance to just under 54 percent, its highest point since September 2018.

In fact, Bitcoin dominance has largely been on the rise over the last 12 months, with the coin reaching a relative low of 35 percent dominance in May 2018. While BTC experienced a slight retraction during the market fall of last December, the coin is making a recovery that could be trending towards the >80 percent dominance the coin historically experienced prior to early-2017.

More than likely, Bitcoin will not be able to eclipse its 2017 dominance of 85 percent, given the changing landscape of cryptocurrency. While BTC is by far the most recognizable currency in the industry, with Bitcoin holding household-name status familiarity (the coin is largely synonymous with cryptocurrency in mainstream markets), altcoin projects like Ethereum and EOS have carved out a substantial amount of developer interest. With Bitcoin yet to overcome the hurdle of scalability, its price is likely to stall again at upper limits in the absence of a solution like Lightning Network.

Cryptocurrency, assuming it can gain price traction again as in 2017, is still in need of proven usability. Investors and speculators may continue to drive up the price of Bitcoin and contribute to its market share dominance, but the entire landscape of currencies have to generate scalability in order to become an accepted technology.

The post Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise appeared first on Ethereum World News.

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Bitcoin Market Dominance at 45 Percent and Altcoin Prices Begin to Decline

Bitcoin is currently dominating the cryptocurrency market as the top-ranked cryptocurrency looks to achieve a 50 percent market share. While BTC remains in the green, the altcoin market is beginning to experience another decline. Ripple, Stellar, and IOTA are the biggest losers among the top ten cryptocurrencies in the market.

Bitcoin Dominance Back Above 40 Percent

According to Coinmarketcap, Bitcoin is now at 45 percent dominance of the cryptocurrency market. The last time BTC was at such a dominance level was in early April 2018. The top-ranked cryptocurrency has a market capitalization of $127.8 billion with more than $5 billion in BTC traded within the last 24 hours.

The price of BTC continues to hold steady above $7,400 with experts believing that Bitcoin could go on to reach $8,000 and $9,000 during this price rally. The consensus at the moment is that the surge is only a temporary squeeze and that another significant dip is imminent. Experts predict that Bitcoin will test a new 2018 low during the next price decline.

Altcoins Bleeding

While BTC holds steady, altcoins are bleeding, many of which are in danger of eroding the gains of the recent price increase. It is usually rare to witness such a significant decoupling of the market with Bitcoin and the altcoin market going in different trajectories.

Ripple, Stellar, and IOTA lead the losers pack among the top ten coins. Ripple and IOTA are down by 5 percent respectively while Stellar has declined by more than 6 percent. The XRP price dip is even more profound given the struggles of the token in 2018. XRP is yet to sustain any growth momentum in 2018 and has failed to hold on to the $0.50 support level gained after the July 18, 2018 rally.

Other major coins like NEO, BNB, and ICX have also experienced a massive downward slide over the past 24 hours. NEO is down by almost seven percent, BNB by 5 percent, and ICX by a whopping 11 percent.

The current downward slide is probably due to a technical correction in the wake of the July 18 price surge. The emergence of strong volume in the market points towards a more sustained price rally which should hold on for more than just a couple of days.

Do you think the altcoin price dip is a sign that the recent rally might be over? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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