In a matter of hours, the price of Bitcoin went from USD 58,000 to USD 53, 3000 per unit. The behavior of the cryptocurrency market led to almost USD 2 billion in settlements.
In recent days, the cryptocurrency market lost more than USD 100 billion, and some crypto assets fell back significantly. In a matter of hours, the price of Bitcoin (BTC) dropped by 7%, going from USD 58,000 to USD 53,300 per unit.
Total market capitalization went from USD 2.29 trillion to around USD 2.17 trillion. However, the market partially recovered to settle back above USD 2.21 trillion, according to data from CoinMarketCap.
The Drop in the Price of Bitcoin Generated Nearly USD 2 Billion in Settlements
There were more than USD 1 billion in settlements on exchanges in 12 hours due to the general behavior of cryptocurrencies. Besides, this situation generated almost USD 2 billion in settlements in 24 hours, according to data from Bybt.
Spanish trader @inmortalcrypto believes that this correction is due to the temporary migration of traders to alternative cryptocurrencies or altcoins. He argues that investors could be looking for higher levels of profitability, which the pioneering cryptocurrency would not be offering at the moment.
“The price of Bitcoin is falling because the price of altcoins is going up. Right now, Bitcoin does not have enough potential to give returns to investors. All the people who have been dabbling in Bitcoin in recent months have already made a profit. However, now they can see that the cryptocurrency is consolidating,” explained the Bitcoin trader.
Those Who Invest in Altcoins Do It to Buy More Bitcoins
The trader considers that the diversification of the market could be a positive factor. He said that this is not the beginning of a downtrend for the main cryptocurrency on the market. In that sense, the trader highlighted that all the profit that altcoins offer will return to BTC. He explained that “those who trade altcoins just want to have more bitcoins.”
The drop in Bitcoin’s dominance to 2018 levels gives validation to @immortalcrypto’s point of view. The Ethereum network and its native crypto asset Ether (ETH) are targeting BTC. The second cryptocurrency on the market recently reached an all-time high of USD 3,523 per unit. Following that increase in the price of Ether, Vitalik Buterin became a billionaire.
At the time of writing this article, the dominance of the pioneering cryptocurrency in the market is 44.36%. The four cryptocurrencies following Bitcoin are Ether at 16.74%, Binance Coin (BNB) at 4.2%, Ripple’s XRP at 3%, and Dogecoin (DOGE) at 3.51%, according to data from CoinMarketCap.
Ether is not the only crypto asset that has shown positive numbers despite Bitcoin’s stumble. Among the others is the meme cryptocurrency Dogecoin, which has grown by 106% in the last week. For their part, LINK has had a boost of 25.5%, and Ethereum Classic (ETC) has had an advance of 87.4% in the same period.
By Alexander Salazar