íàçâàíèå

Bitcoin Dominance Nears 70% For the First Time Since December 2017

Bitcoin Dominance Nears 70% For the First Time Since December 2017

The bitcoin dominance rate on Tuesday inched towards 70 percent for the first time since December 2017.

At circa $217.91 billion, bitcoin’s market capitalization now covers 69.93 percent of the total cryptocurrency market. At its lowest, the world’s leading cryptocurrency was covering only 36.68 percent of the overall market in January 2018.

Bitcoin Dominance Hits 2017 High | Image Credits: TradingView.com

Bitcoin’s dominance dropped as investors started moving their capital to the assets launched during the initial coin offering mania of 2017. But as a majority of those blockchain projects failed, with their in-house assets losing value in the act, investors either left the cryptocurrency market upon suffering significant losses or hedged back to bitcoin and other reliable assets like Ethereum and Litecoin. As a result, bitcoin’s dominance startedsurging higher in 2018, even though its value was dropping lower.

Bitcoin More Attractive to Investors

This time, the fundamentals that are appearing to support bitcoin are macroeconomic. The Fed rate cut, US-China trade war, capital control in China, economic sanctions on Iran and Turkey, as well as hyperinflation in Zimbabwe and Venezuela are some factors that are prompting investors to speculate on bitcoin, a non-sovereign asset.

On the other hand, mainstream financial firms are building services to cater to growing bitcoin trading clientele. Fidelity Investments and TD Ameritrade, for instance, are launching bitcoin trading solutions on their platforms. Swissquote, Switzerlands most prominent stockbroker, has also introduced a similar service just recently. Bakkt, a digital asset platform launched by the Intercontinental Exchange, has recently tested the world’s first physically-settled bitcoin futures contracts.

Investors look at bitcoin over other cryptocurrencies because of its real-world potential. Atop that, they are bullish because of its scarcity bitcoin’s supply will be cut to half next May which would make it a rare asset to hold in the future.

Price Reflecting Interest

Bitcoin’s 70 percent dominance in the cryptocurrency market also comes in the wake of its strong bullish bias. The asset in the last seven days hassurged by more than 30 percent from $9,371 to as high as $12,320. The surge, in turn, followed Donald Trump’s threat to impose 10 percent tariffs on $300 billion worth of Chinese imports. In retaliation, the People’s Bank of China intentionally reduced the price of Chinese Yuan to less than seven dollarsa unit, its lowest in the last eleven years.

History shows a close inverse relationship between yuan and bitcoin. Earlier in May, bitcoin surged by as much as 58 percent while yuan dropped by 2.5 percent. Analysts believe investors in China, who remain under tighter capital controls, hedged into bitcoin as safe-haven.

At the same time, all the altcoins are losing value against bitcoin, shows data recordings from the last 24 hours. Ethereum, for instance, is 2.23 percent down against bitcoin. The XRP/BTC instrument is also weak after dropping more than 5 percent in over a day.

The post Bitcoin Dominance Nears 70% For the First Time Since December 2017 appeared first on NewsBTC.

06.08.2019 / 05:20 34
Crypto Market Wrap: Altcoins Retreating as Bitcoin Dominance Reaches 56% Crypto Market Wrap: Altcoins Retreating
Crypto markets cool off on Monday; Litecoin, Cardano, Monero and Cosmos dropping back, Bitcoin dominance climbing. Market Wrap Crypto markets are
Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise Altcoin Trouble Ahead? Bitcoin (BTC)
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
Why Bitcoin Dominance Dropping to 7-Month Low is Bullish for Price Why Bitcoin Dominance Dropping to
The Bitcoin (BTC) market capitalization dominance currently being at its lowest level in seven months is not exactly bad news. Why? Because the
Cryptocurrency Market Update: Bitcoin Dominance Reaches New 2018 High Cryptocurrency Market Update: Bitcoin
FOMO Moments Altcoins are still suffering; Cardano, Nem and VeChain still dumping, Emercoin and Waves rising. There has been virtually no movement in
Bitcoin Dominance Hits 2018 High Despite Price Slump Bitcoin Dominance Hits 2018 High
While Bitcoin (BTC) marks yet another day trading in the red, the world’s leading currency is widening its lead in the market cap race, whose total
Bitcoin Dominance Hits Record High for 2018 Bitcoin Dominance Hits Record High for
An index measuring Bitcoin dominance is now over 45.7 percent its highest since December 2017 when the price of BTC reached its all-time record high.
Comments (0)
Add a comment
Comment on