The cryptocurrency market continues to be a roller coaster ride as the price of all the currencies witnesses a massive shift within a few minutes. Last week, the whole market plunged in a short span, with Bitcoin [BTC] and other top cryptocurrencies plunging by double digits. This week has started with the market taking the opposite direction as all the coins have recorded a sudden spike, turning the entire market around.
According to CoinMarketCap, at press time, Bitcoin is trading at $3,706 with a market cap of $64 billion. The trading volume of the coin is recorded to be and the coin has seen a rise of over 2% in the past one-hour.Bitcoin price chart | Source: Trading View
The highest trading volume for the coin is pictured to be pouring in from BitMEX, a leading cryptocurrency exchange around the world, with BTC/ USD trading pairs. The second spot is taken by Coinbene with Tether [USDT] pair. The other top three exchanges contributing to the hike are EXX, OKEx, and Bibox.
Additionally, Bitcoin is not the only coin to rise from the bearish market. Ethereum [ETH], the third-largest cryptocurrency by market cap, has also stepped up and claimed the throne of biggest gainer in the past one-hour. The coin is current $129.39 trading at with a market cap of 13.5 billion. The trading volume of the coin is recorded to be $2.77 billion and the coin has surged by over 9% in the past one-hour.
The highest trading volume for the coin is surging in from OKEx with ETH/ USDT trading pair. The other top four exchanges are LBank, Bibox, Local Trade, and DOBI Exchange.
XRP, the second largest cryptocurrency, is also pictured in green. The cryptocurrency is trading at 0.33 with a market cap of $13.74 billion. The trading volume for the coin is $637.63 million and has surged by over 2% in the past one-hour.
Soon after the price made an upward trend, Bakkt, one of the biggest financial players in the space, announced its first acquisition.
Kelly Loeffer, CEO of Bakkt said:
“To advance that effort, I’m pleased to share that we have entered into an agreement to acquire certain assets of Rosenthal Collins Group (RCG), an independent futures commission merchant with nearly 100 years of earning clients’ trust. In December, RCG announced the sale of all its customer accounts to Marex Spectron, one of the world’s largest commodity brokers. As part of that transaction, our aim was to purchase certain valuable assets related to developing our platform. We expect to close the transaction in February, and are excited to welcome members of the RCG team to Bakkt.”
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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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