Investors are prepping for the next Bitcoin buy in, survey shows increasing interest in Bitcoin
Image source: pixabay - StartupStockPhotos
During the period of cryptocurrency slump before reaching market stability, Bitcoin seems to have out-performed many alt coins regaining its 50 percent market dominance. My regular check on the cryptocurrency market capitalization shows peak Bitcoin market capitalization year-to-date.
Image source: coinmarketcap - Total Market Dominance
Ethereum has gained from 12% to 15% YTD, while other coins have fallen. Bitcoin Cash dropped from 6.9% to 4.6% and Litecoin dropped from 2% to 1.6%. Ripple had a great suffering falling from 14.4% to a mere 5.6%. Given Ripple's history as a pseudo-coin/token, the sell off could have other repercussions. The remaining 20% of altcoins seem to have maintained their market dominance.
It could be a start of a renewal and selection process where many alt coins and over-valued tokens exit the market. It is good news to know that both Bitcoin and Ethereum have held their positions and made gains as the most stable cryptocurrencies in the market.
In trading terms, technical analysis of the Bitcoin chart trends have led to Renaissance Macro Research, a finance research firm to call Bitcoin 'permanently impaired' or 'game over'. According to Renaissance head of technical research Jeff deGraaf, his words have a certain degree of weight since he is a highly regarded forecaster. However these technical analysis may not apply directly to Bitcoin, since most of its investors are retail and not institutional investors.
A sell off by institutional investors have a more permanent impact on the asset, while retail investors are much more likely be affected by the media and news. The most recent delay in SEC's decision to approve or reject Bitcoin ETFs may have led to quite a strong uncertain sell off.
“Parabolic moves are notoriously dangerous for short‐sellers … Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game‐over’. We are of course referencing Bitcoin as exhibit ‘A’ in today’s market.” deGraff said.
Source: CCN - David Hundeyin
Image source: pixabay - PIX1861
Analyses have failed to factor in the reliance on Bitcoin by countries with unstable economies. A recent study published by Infiniti Research, a provider of market intelligence, reported that cryptocurrencies although not widely accepted, are already impacting international finances by making cross-border transactions easier. Source: bitcoinist - Julio Gil-Pulgar.
Even though digital currency has not been accepted extensively, its use in countries like Venezuela where Bitcoin looked to be more stable than its national currency at the time of high inflation, shows that it can be an effective substitute for hard cash in the future.
Source: bitcoinist - Julio Gil-Pulgar
In the case of Turkey, doubling tariffs on Steel and Aluminium by the US Trump Administration have caused Turkey's national currency, the Turkish Lira, to plunge. Bitcoin has already become a safe haven for these countries to correct the imbalance in the gaps in the world economies. Not very surprising if Bitcoin starts to dominate as a world currency one day, although that would seem quite a long way to go from now.
-tysler
Image source: pixabay - simi - Cappadocia, Turkey
