Bitcoin Expands its Dominance of the Cryptos Amid Tough Season
The cryptocurrency markets remain in perpetual ruins from the devastation of the Bitcoin crash months ago. Although Bitcoin was hurt the most in terms of pure dollar amount, hundreds of altcoins have also bled heavily, with few big winners emerging from what some analysts are calling the biggest crypto winter in recent memory. But amid all of the gloom and bearish sentiments, the community continues to gain new insights into the present—and future—of the markets.
All in all, most analysts agree that this bear market will eventually turn bullish once again. The cryptocurrency markets have always been naturally prone to volatility, so it should come as no surprise that the markets had to eventually take a dive, especially after the massive price hike for many currencies during the ICO bubble of late 2016 and early 2017. But in the midst of the market’s downward sentiments, it is sometimes hard for investors to see the bigger picture, which seems to be largely positive, especially for the world’s most popular cryptocurrency.
Big Losses In 2018
There can be no denying that the cryptocurrency market has been bleeding in this quarter of 2018. The Bitcoin price currently hovers at around $6,400, which is a far-cry from the high of over $20,000, seen last year. But compared to many altcoins, the Bitcoin loss has been rather positive. Bitcoin has seen a loss from its old yearly highs of around 62% which, while certainly a high amount, is not all that bad compared to the overall loss of an average 85% experienced by altcoins in this same sector.
Ripple has been one of the big losers of the year, stagnating now at around $0.26, far lower than its earlier yearly high of nearly 70 cents per coin. NEM and Cardano are also on the list of the biggest losers, who have all experienced price reductions of around 90% of their value during this cryptocurrency winter.
Compared to those staggering losses, it shouldn’t be surprising that some analysts are claiming that things “could be worse” for Bitcoin.
During the altcoin and ICO craze of the past two years, Bitcoin suffered a staggering loss of its overall market dominance. The market dominance has historically been a relatively good indicator of potential stability of the currency, which meant that the loss of dominance presented a new set of fears for investors searching to shake the volatility of the markets.
But this season seems to have weeded out some of the weaker ICO-generated altcoins, giving Bitcoin back some of its dominance in the growing market. Specifically, the cryptocurrency took back around 23% of its dominance in the overall cryptocurrency markets, reaching nearly 58%, a number which continues to climb.
The Altcoins Will Bleed
If things keep going how they are now, this could be very bad news for altcoins trying to compete with the most popular and oldest crypto in the world. As the market continues to correct itself, some analysts argue that many altcoins will die out, and only the strongest among them will survive to compete directly with giants like Bitcoin.