Over the last 24 hours, the altcoins’ market is in deep red with some top cryptocurrencies losing between 4-10%. As per the charts on CoinMarketCap, the altcoins have lost over $4 billion in combined market cap over the last 24 hours.
Among the top ten cryptocurrencies, Chainlink (LINK) has lost the most in percentage terms and is down 7.75%. At press time, LINK is trading at $10.41 with a market cap of over $4 billion. Other top losers of the altcoin space include ETH losing 3.28%, XRP losing 4.46%, Binance Coin (BNB) losing 6.02%, and Cardano (ADA) losing 6.68%.
On the other hand, Bitcoin bulls continue to gain market dominance. In the last 24 hours, Bitcoin (BTC) is up 2.26% or 300 points as it eyes its next milestone of $12,000. Moreover, Bitcoin market dominance also surges above 60% for the first time over the last month.
The recent developments around rising institutional participation in Bitcoin are favoring the cryptocurrency. The latest report from Grayscale also suggests that Bitcoin remains the top choice for investors. The Grayscale Bitcoin Trust saw its assets growing 147% year-to-date.
Bitcoin (BTC) Can Eventually Decimate Altcoins
Bitcoin dominance inching north has got the analysts thinking about possible scenarios ahead. Su Zhu, the CEO of Three Arrows Capital tweeted earlier today that BTC rise is, in fact, the loss for altcoins.
$BTC going up swiftly is not only not bullish for alts but it's bearish
reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant
— Su Zhu (@zhusu) October 19, 2020
While there are certain changes that Bitcoin capital will flow back in altcoins. However, Su Zhu explains that BTC’s price above $40K can lead to a spiraling bull run for the world’s largest cryptocurrency. In such a case, the capital flowing back to altcoins will be altogether more difficult.
Another data from Skew analytics shows that BTC’s market share for trading volumes has surged on the Huobi exchange. Huobi’s trading volume data is significant as it alone controls 1.1% of the total BTC supply in its cold wallet.
— skew (@skewdotcom) October 20, 2020
It seems as if Bitcoin has been smartly consolidating its position in the market. On the other hand, the regulatory cleanup for crypto exchanges continues in the market. Bitcoin players see it as a positive for the cryptocurrency as it removes the bad actors that could possibly manipulate the markets. Some market analysts think that the regulatory move can also fuel the chances of Bitcoin ETF in near future.
With all of the regulatory scrutiny attached to the digital assets space over the past few weeks, I find it important to look at a bigger picture of where this market is headed.
Of course, this means analyzing the potential of an ETF product.
— Z (@SplitCapital) October 19, 2020