The wild crypto week is coming to an end and we can see that Bitcoin extended its dominance and grabbed a greater share of the cryptocurrency market – all while most of the alternative coins declined. The latest cryptocurrency news show that Bitcoin now makes up close to three-quarters of the entire cryptocurrency universe, according to dominance data pulled from Coinmarketcap.
The market capitalization of Bitcoin is over $200 billion and the dominance is set at 68.7% which means that Bitcoin is 10 times greater than of the next largest digital asset, Ether (ETH). In a week when the traditional financial markets are stumbling, the price of Bitcoin has held up. This is why many best cryptocurrency news sites described this one as a wild crypto week.
While cryptocurrencies such as XRP and Ether dropped, Bitcoin held its momentum. According to the co-founder and CEO of the online trading platform eToro Yoni Assia:
“As much as Bitcoin was a risky asset class, I think alt coins are significantly riskier. A lot of people got burned or had a bad experience during crypto winter,” referring to the period towards the end of 2018 when cryptocurrencies sold off and the values dropped.
The trade war between China and the US also makes another case for a wild crypto week, as the altcoin news showed. It intensified a lot of things with the tit-for-tat retaliations rocking markets the world over. This allowed investors to sought shelter in safer assets such as sovereign bonds and gold. However, analysts posited that Bitcoin also benefited from the turbulence given the sudden spike in the geopolitical tensions and the coin’s isolation from government control.
“Are people buying Bitcoin because it’s a speculative asset class and borrowing is now cheaper? Or: There’s a lot of global uncertainty and this caught a lot of traders and asset managers off guard so they’re flocking to an uncorrelated asset right now?” asked David Martin, the chief investment officer at Blockforce Capital. “You can make an argument for both right now,” he said.
In the end, the wild crypto week comes with a warming – Bitcoin is still a volatile asset and losses may come when no one expects them.
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