History Moves Ever Onwards as Bitcoin Left These Altcoins in the Dust But Are Bound to Catch Up
Having managed to pick up its financial pace over the last few weeks. Bitcoin has jumped approximately 44 percent over this month alone, with its value hitting the high point of $7,800, which makes May the best month in terms of performance for Bitcoin in a long time. The only month that competes would be November of 2017.
Along with this, A number of altcoins have managed to actually outpace Bitcoin in some major areas. While this makes for a very interesting state of affairs – they still lag behind the gains of BTC.
For those of you that don't know, Altcoins and Bitcoin operate in a reverse fashion – whenever Bitcoin performs well, altcoins slide due to increased investor interest in the former. Meanwhile, if BTC undergoes a downwards reversal, interest in altcoins peak and their values rise. But this is a digression for now.
Over this last month, however, we have seen Bitcoin increase significantly over the span of April to now, increasing by an approximate value of 85 percent over just a couple of months. Putting that into perspective – Bitcoin was $4,100 on April 1st. In comparison, the level of market dominance within the market overall increased by roughly 10 percent. This provides us with greater perspective on Bitcoin versus altcoins.
So having a 10 percent increase in market dominance over nearly two months doesn't sound like much. But that's the difference between being a major player, to dominating the market once again. On April 1st, Bitcoin's market dominance stood at 50 percent. We zip forward to now and we see that it is now sitting on a 60 percent market cap.
We don't really need to take a long deep dive into the world of analytics to see the performances of crypto over time. Just looking at a snapshot of how these coins have performed, we can see the various coins that have underperformed relative to Bitcoin.
For example, take a look at the performances of crypto, specifically the top 15 as of April 1st, this year.
Going from the list from April 1st to yesterday, there have been a number of changes in the rankings. For example, Bitcoin Cash managed to jump up to 4th place, while the likes of Satoshi's Vision (Bitcoin SV) and EOS slid downward by two slots.
We can then take these same 15 coins (apart from Bitcoin and the USDT stable coin), and cross-reference their return alongside Bitcoin, the worst performing coins out there can help show us which of these altcoins are underperforming relative to the remainder of the market.
If you were to have a weighted basket of these various coins, you would see that they have underperformed in comparison to Bitcoin by 31 percent: with some of the worst performers being XRP, XLM, ADA, TRX, BSV and IOTA.
If we take this into consideration, these various coins have not only managed to underperform by a total of 40 percent and above, but they also managed to underperform in terms of the average return by over 10 percent.
One of the only altcoins that has managed to outperform Bitcoin was Bitcoin Cash, with the worst performing coin being Bitcoin SV (Not the best day to be a backer of Satoshi's Vision).
The underlying purpose of this kind of analysis, we have seen that there are certainly outliers out there, especially considering that they are performing on the opposing end of the range.
With all of this in mind, we can theorize that the likes of coins like XRP, XLM, ADA, TRX and IOTA may, in fact, be under-priced compared to other coins on the market – and this is relative to their value before the bullish upturn took shape.
If the underlying sentiment and fundamentals with relation to these various coins has remained relatively stagnant even during this period of growth, it may be the case that these coins will be undergoing a regression. If other analysts have had their predictions come to pass, then this won't exactly be a major surprise if these various coins would go on to outperform Bitcoin over the next month.