Bitcoin Dominance Maintains at 55% After Three Months, Altcoins Continue to Feel the Fall
Bitcoin dominance has reached 55% after a year in which the whole market has been in a downtrend. According to CoinMarketCap Bitcoin reached a new high in the last three months, showing that even when it has lost around 50% of its value during the last few weeks it remains the strongest virtual currency in the market.
Back in September Bitcoin’s dominance was able to reach 56.15%. Between August and November, the price of the most popular virtual currency remained stable close to $6,300. However, in November it plummeted down to $3,300. Other virtual currencies such as Ethereum (ETH) or Bitcoin Cash (BCH) have also lost more than 50% of their value in the last few months.
This helped Bitcoin grow its dominance in a very competitive market. Other digital assets held their market share during this period of time. Furthermore, XRP was also able to increase its market dominance from 5.5% in September up to 11.45% now. XRP has also been very resilient in the last few months.
As mentioned before, Bitcoin Cash had a very weak performance. Since its all-time high, this virtual currency lost 97.5% of its value. No other top 20 digital asset experienced such a massive drop.
It seems that during bear markets, individuals tend to hold their BTC rather than their altcoins. When altcoins fall, investors move towards Bitcoin, the largest digital asset and the virtual currency that has been for the longest period in the space. Among cryptocurrency enthusiasts and investors, Bitcoin works as a hedge against falling prices in altcoins.
At the end of 2017 and the beginning of 2018, several Initial Coin Offerings (ICOs) launched new tokens that were not able to sustain their value over time. Most of them lost more than 90% of their value, while others completely disappeared.
It is also worth mentioning that in November, the cryptocurrency market lost half of its value from $220 billion down to $110 billion. There are several investors that believe that Bitcoin is going to experience a new drop in the near future. Some analysts believe that Bitcoin could reach $1,500 but others are more optimistic and think that the bottom would be close to $3,000.
In the future, Bitcoin could continue to grow with an increased interest from institutional and traditional investors.
At the time of writing this article, Bitcoin is the largest crypto and it has a market capitalization of $59,48. Each coin can be purchased close to $3,400.