Summary:
- Bitcoin trade volume continues to dominate the crypto markets
- The increment in Bitcoin trading has had a negative impact on alts such as ETH, LINK, XRP
- Bitcoin’s dominance is once again above 63% and could signal more focus on trading BTC at the expense of altcoins
Bitcoin (BTC) continues on its bullish climb towards $14k and its corresponding trade volume is increasing at the expense of that of altcoins. According to the team at Santiment, Bitcoin’s trade volume has significantly eclipsed that of other popular digital assets such as Ethereum, XRP, ChainLink (LINK) and Binance Coin (BNB). The rise of Bitcoin’s trade volume in the past few days has led to the reduction of the trade volume related to the aforementioned altcoins. This fact was highlighted by the team at Santiment via the following tweet.
💪 The dominance involving #Bitcoin is continuing to display itself, particularly via trading volume. When comparing other top #blockchains in the past day, note the decline in $ETH, $XRP, $LINK, and $BNB trading volume, while $BTC‘s levels stayed high. https://t.co/po9aqbs5Mr pic.twitter.com/evijtftERN
— Santiment (@santimentfeed) October 29, 2020
Altseason Will Have to Wait as Bitcoin Market Dominance Breaks 63%
Earlier this week, it had been postulated that a healthy correction of Bitcoin was a chance for Ethereum and altcoins to thrive in the crypto markets. This prediction was issued with a slight warning that if Bitcoin’s dominance in the crypto markets broke 63%, altcoins would be in for another few days or weeks of decline.
Rechecking the Bitcoin dominance chart on Tradingview.com reveals that BTC broke the anticipated 63% level in a move that seems similar to June 2019 right before it hit its $14k peak value. The chart below provides a visual cue of the significant Bitcoin dominance inrement.
Altcoins are ‘Dead Weight that Drag Bitcoin Down’
With Bitcoin struggling to break $14k, one thought on many BTC maximalists is whether the proliferation of altcoins has had a negative impact on the price of Bitcoin. This is through the diversion of capital that should have otherwise been invested in Bitcoin. This fact has been explored by Bitfinex Whale @Joe007 who had this to say about altcoins.
Been talking about this for a while. All the shitcoin/crypto “ecosystem” is a huge dead weight that drags Bitcoin down and delays mass adoption. Idiots pushing “alts are akshually good for BTC” narrative couldn’t be more wrong.
Apart from altcoins, stablecoins have also been accused of taking away capital that should be in Bitcoin. Recently, Tether reached a market cap of $16 Billion that if otherwise diverted to Bitcoin, would result in the latter being valued at $14,355. This is when you add the $16 Billion to the current market cap of Bitcoin at $250 Billion, then you divide by a circulating supply of 18,529,906 BTC.