The last 30 days in cryptocurrency markets have seen some interesting movements. Despite Bitcoin getting off to a great start in 2020, the altcoin markets are getting off to an even hotter start. This has been interesting to many analyst in the space, who predicted Bitcoin would take more market share in 2020 due to it inching closer to its “halving.”
Bitcoin Market Dominance
Among a long list of cryptocurrencies by market cap, Bitcoin still retains most of the value in cryptocurrency markets accounting for about 65% market dominance. If you were to look at a list of all cryptocurrencies, you would see that the altcoin market is growing. Visionary Financial recently shared a visual displaying the growth of altcoins in circulation. From a mathematical approach, this has put some pressure on Bitcoin market dominance.
Bitcoin market dominance has stayed relatively stable since December 2019, which has given altcoins some fuel. If we take a look at Bitcoin market capitalization by time frame, we can see on CoinMarketCap that :
- November 17th 2019: Bitcoin Market Dominance ( 65.84 % )
- February 2nd 2020: Bitcoin Market Dominance ( 65.48% )
What Does Static Market Dominance Signal?
When you have static market dominance like this, investors will digest it a few different ways. On a bullish note, long-term investors will believe this is a good sign for stability in the market. Along with stability in the market, this helps push the theory of “market acceptance.” On a bearish note, some long-term investors will argue that this means utility and scalability are struggling on a global scale. When this happens, some long-term investors may look at altcoins that can solve such issues. Right now this is minimal since the market is mostly retail investors. As more and more institutions enter the market, you will see much more of this applied research.
Bitcoin Price Catalyst 2020
Along with many investors / traders anticipating a big move upon “Bitcoin Halving” this year, Bitcoin price has also continued to serve as a global hedge to traditional markets. As discussed in a previous report, Bitcoin started its additional uptrend in 2020 when the Coronavirus outbreak started hitting mainstream media. Traditional markets took an initial hit, in which Bitcoin rallied. Since the initial scares, traditional markets have actually shaken off Coronavirus for the most part. Despite the death toll still spiking, its seems as if U.S investors believe the United States have a handle on things. You can see the figure below which outlines the scenario perfectly. We can further see that when traditional markets sold off to Coronavirus ( black line ) , Bitcoin price ( orange line ) started maintaining strong upward momentum. As discussed above, traditional markets have since shook off the Coronavirus scares and have begun an uptrend, sending Bitcoin price into a short-term sell-off.
Altcoin Market Analysis
During all the drama, altcoin markets have been climbing regardless. With the recent price action, Bitcoin has had a difficult time building up any additional market dominance. Some altcoins are off to ridiculous starts in 2020. If we take a look at a list of popular cryptocurrency by market dominance, we will see altcoins such as Zcash and Litecoin off to tremendous starts.
Despite Bitcoin maintaining +26% growth the last 30 days, that’s peanuts compares to other altcoins such as:
- NEO Price: +37%
- XRP Price: +38%
- Ethereum Price: +42%
- Monero Price: +49%
- Litecoin Price: +63%
- Zcash Price: +126%
Why Many People Call For “AltSeason”
Whenever altcoins have great runs like this, you are sure to see many people on social media calling for “altseason.” If your not familiar with the term, it simply refers to the price action altcoins experienced in 2017. During this time, alts such as XRP and NEO rallied over +25,000% which was pure insanity. Even with the recent rallies, its still extremely early to make such a call. Seeing the same type of activity as 2017 would be extremely rare. The crazy thing about crypto markets though, is that anything can happen. It will be interesting to see what Bitcoin price does as it inches closer to “halving.” It will also be interesting to watch altcoin markets, since some are calling 2020 “the year that some altcoin utility kicks in.”
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