📈 Bitcoin Advances While Many Others Fall What Could Cause That?
Bitcoins market cap is now $128,374,644,453 at the time of writing this and is up 0.83% just today! While nearly every other crypto is falling down 2% or more bitcoin continues to climb.
Why is that?
What might be causing it?
*Please note this is my own opinion and speculation and by no means is investment advice. Please seek professional advice before investing
A few days ago just before the bull run started to happen we had news that ETF and large funds where starting to flow into bitcoin. But here is the thing most people are not considering. These large investors can ONLY pump money into bitcoin right now. They can not move these funds out of bitcoin into altcoins they simply buy into bitcoin and then hold.
I do firmly believe this is why we are seeing bitcoin continue to run ahead while everything else starts to fall. Also bitcoins dominance is at 45.3% which is imply massive compared to where it was a few months ago at just 33%
These numbers to me spell large investors that are regulated to only buying bitcoin.
Is this a good or bad thing?
Good
Only if bitcoin can handle transactions this year. If prices for transactions start to soar again we are going to be bottle necked yet again so let us hope that issue has been resolved with batching and lightning network
If other large coins such as ethereum litecoin are able to be mass bought as well (this should be the case in terms of coinbase coins they should all be possible investments for large investors)
Bad
- If all the money goes into bitcoin the price of altcoins is going to crash and crash hard! I would suspect a large number of these altcoins to fail out even ones that are actually good projects. However this also falls under the good as being a way to rid crypto of junk altcoins and move into high quality altcoin projects.
What are your feelings with what is going on at the moment? Do you feel the same or something else? I always love hearing others views thanks!
More money coming into BTC will be very good for alts too at the end of the day. Even if the big money can only buy BTC through the ETFs and they can't buy anything else, the higher BTC prices and lower alt prices in the short term will encourage regular holders of BTC like you and me to trade into alts, which will then cause their prices to rise too.
As long as money is coming into the crypto market, all good coins will rise - a rising tide lifts all ships, as the saying goes.
Thank you sir : )
Just another temporary market adjustment as things "mature"...if BTC moves up gradually swaps will be made into the alts at these higher prices taking them with it...
ALTs are not looking good short term. Just wrote an article on that. I am out of ALTS at the moment as BTC is looking quite strong
Bitcoin is really dominating the market. Thank you for sharing this @bitcoinflood! :)
Like you said bitcoin is the main one, investors may just see this as the only one they would maaake use of
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Dominance increasing like a star is again rising. Dad of crypo currency is back seems like this. Good post.
I see a big downtrend in the technicals.