- Tram Ho
The phenomenal rise in altcoins such as Ether, Dogecoin and Binance Coin is blurring the attractiveness of Bitcoin, raising questions whether it is time to acknowledge the “maturity” of altcoins. are not.
Bitcoin’s share in the total $ 2,600 billion crypto market capitalization has dropped to just 43%, from around 70% at the beginning of 2021. According to experts at JPMorgan Chase and DataTrek Research This number could be a warning sign that the market is overflowing with digital currencies.
In a report to investors last weekend, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote that the weakening of Bitcoin’s dominance is not good because “other cryptocurrencies are mostly bullish. is due to the speculative fever of retail investors “.
Nicholas Colas, co-founder of DataTrek, also shared historical data showing that other tokens will drop in price rapidly as Bitcoin’s share drops to 40%.
Some people believe that the rise in digital money is due to stimulus packages and that the momentum will continue as governments are still rolling out more supportive measures. However, it is difficult to predict the crypto market, which goes against the usual investment analysis.
Bitcoin’s share is declining because investors are becoming more comfortable with new tokens. However, retail investors often chase after tokens that bring profits quickly and are highly speculative.
“Even if you’re not investing your money, it’s worth watching,” Colas wrote. With more than $ 2 trillion invested in cryptocurrencies today, a single crypto market correction would also affect more traditional assets like stocks.
For the JPMorgan expert group, current developments are reminiscent of the end of 2017, when the crypto bubble peaked.
Among the most notable developments in the market yesterday, the most prominent is the fact that Ether surpassed $ 4,000 for the first time, an increase of more than 2,000% in the past year. Dogecoin – which started as a joke in 2013 but is now a hot phenomenon and has grown by more than 20,000% in the past year – has continuously taken its place in the newspapers because of the crazy volatility over the weekend.
Earlier this year, Bitcoin also rose sharply as a wave of mainstream investors and some businesses like Tesla increased buying into Bitcoin, seeing it as a potential tool to avoid inflation in the context of central banks around the world. the world is printing money to rescue the badly damaged economy before the pandemic. Major Wall Street banks like Goldman Sachs and Morgan Stanley also launch Bitcoin related services.
However, over the past month, Bitcoin has struggled, only gaining more than 2% while altcoins have risen vertically.
Source : Genk