What’s going on with Bitcoin?

Tram Ho

“Winter is coming” is a famous quote in the movie Game of Throne, referring to a difficult period of winter and always must be vigilant about the harsh weather.

With Bitcoin players, they can feel more clearly than ever the altcoin winter (grass coin, junk coin) is coming very close. A wide range of coins from diverse ecosystems like Ethereum, Binance Coin to trash like Dogecoin are all growing strongly despite Bitcoin’s decline.

Indeed, for the first time since the end of winter 2018, when the virtual currency market experienced the worst bloodbath in history, Bitcoin has dominated less than 50% market share.

Chuyện gì đang xảy ra với Bitcoin? - Ảnh 1.

Bitcoin’s market cap is just under 50% of the total market, the lowest level since winter 2018.

At the time, Bitcoin was very close to the $ 3,000 resistance mark and one saw a dystopian prospect of a complete market crash. Finally, Bitcoin still holds over 50% market share and the harsh winter is over.

Now, with a value of $ 54,000 and a capitalization of more than $ 1,000 billion, Bitcoin is only 45.4% market share while it is just summer on Earth, but it can be seen that the altcoin winter is very close.

This winter was signaled by a series of shark blow-ups that made Dogecoin’s price abnormally high, peaking at $ 0.59, up 700% from April when Bitcoin peaked at $ 64,000. Dogecoin’s market capitalization is also at an all-time high, reaching $ 76 billion although Dogecoin inflation will occur annually at a rate of 5 billion newly born.

Dogecoin’s rally is expected to slow, but not other altcoins. The two capitalization currencies behind Bitcoin, Ethereum and Binance Coin, are continuously making new highs these days, although their capitalization is still quite far from the number one, 390 billion and 97 billion USD, respectively.

These coins are working to extend their influence on other alternative coins (tokens) on its ecosystem. Ethereum has become the main option for buying virtual artworks (NFT) that exploded in February. By this June, Binance also joined the game by opening the NFT market.

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The digital artwork market could help altcoins beat Bitcoin’s dominance in the near future.

Meanwhile, what creates value for Bitcoin is still the same, which is the terrible power-consuming process as well as the limit of 21 million coins created. Other infinite digital coins solve this problem by burning coins, a process of destroying virtual money by transferring it to a locked wallet.

However, Bitcoin and virtual currencies in general are seriously threatening the existence of central banks, which are the balance that controls the economy. This prompted the Bank of Turkey to ban cryptocurrency payments in mid-last month, effective April 30.

Such bans targeting cryptocurrencies could cause Bitcoin to decline further, while altcoins suffer less due to their smaller capitalization. The balance of difference between Bitcoin and the rest is likely to be corrected further if more crypto market bans are enacted like in Turkey.

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Source : Genk