Bitcoin’s is collapsing while Altcoins are performing better
Bitcoin’s dominance is collapsing while Altcoins are performing better
- The Altcoins have largely overtaken Bitcoin last week.
- The domination of Bitcoin has dropped following the rise of Ethereum.
- Despite a general decline in the market, things seem solid in the current political context.
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After attracting the Bitcoin Revolution attention of the high-tech world with an uncontrolled rise in its share price, Bitcoin was beaten last week. 92% of Altcoins outperformed Bitcoin this week.
At the time of writing, Bitcoin was down about 12% against the dollar since its weekly opening. This also marks a 25% drop from its historic high of $42,000 reached on January 8, 2021. Bitcoin’s market capitalization is now about $592 billion, nearly $200 billion less than those peaks.
And while the rest of the market was a bit pulled down with the BTC, the Altcoins were holding their own. According to Messari data, 92% of them outperformed Bitcoin in the last 7 days ending January 20, 2021.
Bitcoin got a little too hot
The move from Bitcoin to $20,000 was not entirely unexpected, but the move to $40,000 was so rapid that many predicted a cooling.
Similarly, despite the fact that Ethereum had been the main driving force behind DeFi’s madness, its rise had lagged behind Bitcoin’s by a few weeks. So the money probably moved from Bitcoin to Altcoins, as traders sought to capitalise more gains and focused on accumulating satoshis.
Perhaps the most revealing is Bitcoin’s picture of domination. Bitcoin’s dominance in the crypto market reached 72% in early January, its highest level in a year. Since then, the dominance has followed a downward trend and is now around 65%.
Researchers at LongHash, a company that analyses crypto data, have noticed that altcoin is doing well.
According to LongHash, the top 69 altcoins with trading volumes of over $100 million had an excellent week. Only 33% saw their prices fall in dollars. On the other hand, 46 of these tokens have seen their prices increase by more than 10% during this week (these prices have since fallen).
In a bullish comment, the company’s researchers said that Ethereum’s market capitalization could quadruple if it kept pace with the growth that Bitcoin has experienced.