SFOX Shows Bitcoin And Ethereum Dominate The Market in Latest Crypto Correlation Data Report
- Bitcoin’s volatility increased over the last few weeks
- The price of the most popular virtual currency fell during the same period of time
Investors in the cryptocurrency market remain much more confident about Bitcoin (BTC) and Ethereum (ETH) than about other altcoins. This is according to a report released by SFOX Research Team, a crypto prime dealer for institutional investors and high-volume day traders.
Bitcoin and Ethereum Dominate The Market
According to the report, crypto correlation data after Trump’s Bitcoin comments show that the market cares more about Bitcoin than other altcoins. SFOX also considers that Ethereum shouldn’t be considered an altcoin anymore due to its presence in the space and how it evolved over the last years.
During the last weeks, Libra, the cryptocurrency created by Facebook, has led to U.S. President Donald Trump to talk about it on Twitter. He said that if Facebook and other companies want to become a bank, they must follow banking regulations as other financial firms are currently doing.
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Trump has also talked about Bitcoin saying he is not a fan of it. He considers that Bitcoin and other digital assets are not money and their value is highly volatile and based on
At the same time, there were two hearings on July 16th and 17th that didn’t only analyze Libra but also other virtual currencies. The CSO of CoinShares, Meltem Demirors, explained that Libra was not a virtual currency at all.
The report shows that the price of Bitcoin fell from $12,483 to $9,534 in just a week, showing increased volatility in the market. At the same time, the market dominance of Bitcoin has also grown during that period of time.
SFOX explains that one possible explanation for this combination of a downward trend in Bitcoin’s price and an upward trend in Bitcoin’s volatility is that the crypto market does not understand the implications of increased scrutiny towards private blockchain and digital currencies such as Bitcoin.
The report reads as follows:
“This kind of uncertainty is understandable given the wide range of Bitcoin-related comments surrounding Libra: on the one hand, the President of the United States has denied that bitcoin is money and has said that he is ‘not a fan' of it; on the other hand, Congressman Patrick McHenry (R-Nc.) called Bitcoin “an unstoppable force” which Congress should not attempt to deter.”
Furthermore, the crypto correlation that SFOX gathered shows that Bitcoin remained an important player in the crypto market. The report shows that all the other virtual currencies analyzed, including Bitcoin SV (BSV), Ethereum, Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum Classic (ETC), have been less correlated to Bitcoin than in the past.
The report released by SFOX says that data shows that investors and traders may still be much more responsive to Bitcoin rather than to other altcoins. Indeed, regulators could eventually regulate Bitcoin and try regulating altcoins in the future. Bitcoin’s market capitalization moved from 50% to over 65% a few days ago, according to CoinMarketCap.
Finally, the report explains that there has been an increased correlation between Bitcoin and Ethereum compared to other altcoins. This could be related to the fact that Ethereum is coming into its own path as a blockchain network. As SFOX suggests, it may be a good time to consider Ethereum a more established asset like Bitcoin than considering it a normal altcoin.
As reported by CoinMarketCap, Bitcoin is now being traded around $10,100 and it has a market capitalization of $180 billion. In the last 24 hours, the digital currency grew 3.83%.