The whole cryptocurrency market has been bleeding ever since the bear stepped in, earlier this year. Along with all the cryptocurrency witnessing a drastic fall, quite similar to its drastic rise, it also drew the attention of the entire world including well-known politicians, media outlets and celebrities.
The one cryptocurrency majority of the people around the world have heard of, at least once, is Bitcoin, the largest cryptocurrency by market cap. This was solely because of the hike in its price, wherein Bitcoin almost reached $20,000.
However, the virtual currency has crushed the sentiments of its investors as the coin is now touching its lowest points from its all-time high. Today is one of the days the cryptocurrency marked another low point, wherein the coin reached over $3130.29 on Coinbase.
Apart from its price, the coin was recently in the spotlight because of a statement made by Atulya Sarin, a professor at Santa Clara University. The professor stated that the cryptocurrency is on its path to zero as it has entered the death spiral phenomenon, because of its price falling below the mining cost.
Now, an early Bitcoin adopter has stepped in and remarked that Bitcoin is dead. The person in the spotlight this time is Erik Finman, a teenager who ended up becoming a Bitcoin millionaire during the 2017 bull run. Additionally, Finman has reportedly been investing in Bitcoin since 2011. In an interview with MarketWatch, he said:
“Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last. It may have a bull market or two left in it, but long-term, its dead.”
Bitcoin was not the only currency critized by the teenage millionaire. Litecoin [LTC], the seventh-largest cryptocurrency, also joined his bandwagon, stating that Litecoin has “been dead for a while”. Finman went on to say:
“It’s like when the sun is going down and there’s that eight minute period just before it goes dark. Litecoin is in its seventh minute.”
Nonetheless, he considers that cryptocurrencies which are project driven possess the potential to succeed, with his top picks being Ethereum [ETH], ZCash [ZEC], and Bitcoin Cash.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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