There has been a lot of discussion regarding the Bitcoin Dominance Index as of late. Over the past few weeks, more money has entered the cryptocurrency world. However, not all of that money went to Bitcoin. It looks like the trend is slowly starting to reverse, although things can always change in a heartbeat.
Bitcoin Dominance Over 56% Again
Things were looking rather positive for most altcoins over the past few weeks. With money pouring into cryptocurrency, it was evident some people would diversify their portfolio first and foremost. This meant a lot of tokens saw their value improve these past few weeks. However, most good things always come to an abrupt end, and it looks like the altcoin market is bleeding dry right now.
To be more specific, a lot of coins have actively lost value over the past 24 hours. Ethereum, Ripple, Litecoin, and Dash are some of the “bigger” losers. Then again, those coins are all in the top 6, thus it was to be expected. What is rather interesting is how the trading volume of these coins is not slowing down all that much, though.In fact, Bitcoin’s trading volume is not going up much either, as it is below the US$1bn mark for the first time in three days.
It is evident some things are changing in the world of cryptocurrency. Albeit it becomes more important for investors to diversify their portfolio, a lot of people will revert to Bitcoin at the slightest hint of a value increase. That behavior can only go well so long, though, as it appears as if the Bitcoin price is still awaiting a major correction some time soon. Then again, no one can deny Bitcoin’s bullish momentum is quite overwhelming right now.
The coming weekend will be an interesting period to keep an eye on how things will shift around in cryptocurrency. Bitcoin is soaring toward the US$2,000 mark, yet a fair few altcoins are showing signs of resistance as well. There is no reason to think Bitcoin is the only currency worth holding right now, even though it has seen a lot of value gains as of late. However, this bullish momentum will not go on forever, and hedging against what might happen is always the safest bet.
About JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.