Bitcoin Finally Losing The Race?
Bitcoin has officially peaked for the first time ever to an all-time low of market dominance, reaching an extremely deflated figure of 37.1%. What this means for the cryptocurrency market is the shift has now truly begun, where we’re going to see Altcoin dominance surge to an all-time high this year.
For Bitcoin’s market dominance to fall below 50%, it becomes increasingly obvious that everything is about to change from how we once knew and have become accustomed to in terms of market dynamics. The market has been controlled by Bitcoin for far too long and has failed to alleviate from its destructive path for the past 3 years in particular. This has had a negative impact on the market when situations have got a bit sticky for Bitcoin, especially throughout the periods where government regulation and in worst-cases: actual bans of cryptocurrencies in China sent Bitcoin plummeting several tens in percentage, taking the entire market with it even though the regulatory changes only had a direct impact on Bitcoin itself. This meant on a regular basis, especially considering the huge manipulation Bitcoin is abided by from the likes of institutions and the powerful entities controlling the mining farms, the crypto was subject to wild swings in both directions to quickly fill the pockets of these greedy market manipulators who would then leverage these moves to individually pick altcoins that they could drive their newly generated into for an even further profit.
Not only does this mean altcoins will eventually begin to follow their own individual paths based on more logical fundamentals such as the technology, announcements and developments of the cryptocurrency instead of having its growth based on how well Bitcoin performs, but it also means BTC will eventually begin to fade away from being the ‘gateway’ cryptocurrency the market so dearly relies on to purchase altcoins and overall handle payments across the blockchain. This month has marked one of the first periods in history where altcoins are surging whilst Bitcoin is constricted in a tight range-bound box and is struggling to climb back above a key barrier of $14,500 which it recently crumbled below. If we think about the market dynamics right now, this confirms that the flow of money throughout the market is shifting away from Bitcoin and is going into projects that have been heavily undervalued for an extended period of time.
So, as you’re likely asking by now, is the Bitcoin bubble about to finally face its overdue reality? Yes. The cryptocurrency market is at an all-time high and Bitcoin is now at an all-time low for market dominance which is enough of a statement in itself to show we no longer need to rely on Bitcoin to bring capital into this market. Ethereum and Ripple are currently battling it out for the sought-after number 2 position in market capitalisation, this has benefited both crypto’s with an influx of capital and domination in terms of market usage and is most likely going to continue this way in the foreseeable future. New investors and even blockchain hopefuls are already realising that if Bitcoin’s already failed at its original purpose as a means of peer-to-peer payments, then what exactly is its purpose right now and why is it so overvalued compared to the rest of the market? All I know is, a big wake up call is around the corner and it’s closer than many think. Whether Bitcoin will ever rise again after it crumbles into the low thousands is something we’ll have to sit back and anticipate when the time comes.