Brief Historical Examination Of Bitcoin’s Dominance: Can BTC Hodl Its Cream Of The Crypto Crop Spot?
Bitcoin’s Historical Dominance Analysis; Will It Sustain The Dominance In The Crypto Space?
In the last couple of weeks, Bitcoin’s price pump has seen optimism return to the crypto market. And, as usual, price is the main concern for majority of crypto worshippers. In light of the recent developments, various analysts have said that the conditions are rife for a parabolic move and that Bitcoin’s bottom is evident as claimed by crypto analyst, Peter Brandt. The passing of the $4,200 mark on April 2, 2019, was the most imperative pivotal point for crypto analysts to shift their views from bearish to bullish.
While majority of analysts deem the bear market to be over in relations to the recent developments in the market, there are still analysts who have a divergent opinion. One of them is Tyler Jenks who says Bitcoin will slump to $1, 000. The bears argue that Bitcoin’s dominance will rise significantly compared to other cryptos before the bearish market is over.
The Bulls Vs. Bears
Cryptoslate reports that a top crypto analyst, Willy Woo, conducted a survey recently, surveying various prominent crypto market analysts and influencers in regards to whether the bearish market is about to come to an end.
71.6% of the surveyed analysts believe that the Dec 15, 2018 trading point for Bitcoin ($3, 190) marked the bottom of the coin. The analysts and influencers who are bearish said that the entire market capitalization will be an imperative aspect when calling for a bottom.
A report by Adamant Capital founders Tuur Demeester and Michael Lescrauwaet, explains that Bitcoin has embarked on an accumulation phase which makes them to believe that the bottom is already here. Reads part of the report:
“Now, at 75% below its 2017 all-time high, we believe the current bear market represents an exceptional opportunity for value investors.”
Adamant Capital opines that Bitcoin’s market valuation took a nosedive in November 2018 when it declined by 48 percent and that marked the bear market bottom.
The Intricate Relationship Between Bitcoin And Altcoins
Civic CEO Vinny Lingham in a tweet opines that there is an intricate relationship between Bitcoin and other coins in the market which will determine whether Bitcoin will remain dominant and whether the bearish market conditions are over.
As the main cryptocurrency, Bitcoin is the most paired coin in any crypto exchange and, as such, it is hard to evade its influence in the crypto sphere, says Lingham. The crypto expert says that Bitcoin’s dominance in the market can only be curtailed if other altcoins gains independence.
Investor Recognition Is Key
Ben Jones, recently wrote on Medium on the importance of investors recognizing the independence of altcoins. He said:
“… the biggest reason for this, I feel, is that it is a sign of investor recognition — recognition that a particular cryptocurrency has its own real-world value that is entirely unrelated to Bitcoin. In other words, these investors are trading that coin or token based on its utility and not on its potential worth whenever it just so happens to be dragged up or down by Bitcoin’s roller coaster.”
The writer says that the current optimism in the market is highly speculative and highly dependant on Bitcoin’s price.
A seasoned crypto analyst, Nik Patel, predicts that Bitcoin will continue to be dominant in the crypto sphere but the phenomenon might change in the future. Altcoins will meet their roadmap goals but exchanges need to alter the way they set up base pairs. He predicts that the rise of stablecoins and increasing recognition of various altcoins like XRP may reduce Bitcoin’s dominance in the future.
Will Bitcoin continue being dominant in the crypto market? Share your thoughts with us in the comments section.