Published: Thu, August 16, 2018
Finance | By Loren Pratt

Bitcoin And Ether Show Lack Of Momentum As Crypto Market Drops

Bitcoin And Ether Show Lack Of Momentum As Crypto Market Drops

Data on the CoinMarketCap shows that except the Bitcoin, nearly all the other top-twenty cryptocurrencies have lost between 10-20%.

However, now that they've seen the crypto market shed over $600 billion since January 2017, many VCs may just decide to dump their Ether and/or ERC-20 tokens because they might not be able to stomach more losses.

At press time, bitcoin is trading hands at $5,922, printing a 5 percent 24-hour depreciation, according to the CoinDesk Bitcoin Price Index, up slightly from a low of $5,785 set June 24. A 50% Bitcoin dominance means that out of all the investments made across the cryptocurrency markets, 50% of the money has flown into Bitcoin investments.

If history is anything to go by, an increase in Bitcoin dominance hasn't been good for the price of the cryptocurrency.

Cryptocurrencies are digital coins that only exist online. However, today's price fall in Bitcoin is relatively low in comparison to other altcoins which have been the major reason for the huge slump in the market valuations.

Despite a massive sell-off across the altcoin market, Bitcoin (BTC) is now up a little over 1% on the week.

This represented BTC's high point where the price almost reached the $20,000 mark.

In this year, high Bitcoin dominance was experienced in April, when it reached 45.5%.

Ether has tumbled about 40% this month, while Bitcoin has dropped about 26%.

They believe that with Bitcoin controlling more than half of the cryptocurrency market, it is perfectly placed to embark on a bullish run very soon. However, this market dominance might not entirely be good news -at least not for the market as a whole.

The long wait for the Bitcoin ETF and a sell-off in Ethereum are behind the fall.

All these have helped convince investors that Bitcoin is the best amongst them all.

It's unlikely that recent global market turbulence, fuelled by Turkey's currency crisis.

This led to Bitcoin dominance falling.

A lot of traders and investors are staying away from altcoins due to the short-term unpredictability of the cryptocurrency market which has led to the massive drop in altcoin prices.

Like this: