Bitcoin sets the tone
The BTC Dominance Index continues to rise and the Altcoins have their hands tied. While the global economy is struggling with the consequences of the coronavirus pandemic, investors in the crypto sector are increasingly focusing on Bitcoin. This behavior could have devastating consequences for alternative assets. We take a look at the current situation.
BTC Dominance Index at 66
The Bitcoin Dominance Index is considered an important indicator to determine the balance of power between the No.1 crypto currency and the Altcoins. In order to calculate the dominance of a coin, one first needs the respective market capitalization, which one then relates to the total market capitalization. The market capitalization is the product of the market price at which the currency is traded and the total number of coins in circulation in this currency. With a BTC Dominaz Index of 66%, this indicator almost reached a “two-thirds majority” on Thursday.
No more Altcoin Seasons?
Altcoin friends have been waiting for over a year for the wind to turn in the crypto space. Anyone who has already dealt with digital currencies in December 2017/ January 2018 should remember a glorious time. After the Bitcoin climbed above the 20000 USD mark, the momentum changed almost abruptly and the Altcoins captured a market share of about 70%. Almost daily, countless Altcoins recorded a new all-time high, price breakouts in the double-digit percentage range were the order of the day and new investors pumped billions into the market. At the moment many developments speak against a repetition of the events.
Work in progress
At first sight, one might think that Bitcoin is increasingly displacing the Altcoins. But there are promising counter-arguments in favor of the alternative assets. Despite the Corona crisis, many developers are working at full speed and new news reaches the crypto space every day.
A few days ago, Ethereum co-founder Vitalik Buterin took the floor and posted his personal roadmap for the next 5-10 years on Twitter. Users looked at a complex structure of ambitious goals and obvious milestones. The Ethereum 2.0 launch and the final transition from Proof of Work to Proof of Stake could bring the focus of investors back to Ethereum. However, ETH 2.0 is unlikely to be released in the coming months.
Chartically, these are difficult times for Ripple. The XRP-Coin has been struggling for days at the important 0.15 USD border and independent price breakouts have not been observed for a long time. Now, however, CEO Brad Garlinghouse has good news to report. On Twitter he announces the following message: “In these challenging times, Ripple is determined to be part of the global response to the COVID 19 pandemic. We are starting in our own backyard with donations of $100,000 each to
@Kipppunkt COVID fund for emergency measures and @Siliziumvalleyf COVID regional fund for the response to the crisis. If you are interested in contributing to the global response, visit the WHO site COVID-19 Solidarity Response Fund. With this fundraising campaign, Ripple is making an important statement.