It would appear our prediction for an all-cryptocurrency bull run had not come to fruition just yet. Even though the week has only just started, things are already shaping up in an interesting manner. Bitcoin is the only currency in the top 10 to gain any value over the past 24 hours, whereas everything else is taking a backseat. Interestingly enough, the total cryptocurrency market cap has remained virtually unchanged.
Bitcoin Price Rises, Altcoins Fall Behind Again
Over the past few years, we have seen an interesting trend regarding Bitcoin and other cryptocurrencies. More specifically, every time the Bitcoin price goes up in value, most altcoins tend to suffer small to medium losses. It is an uncanny trend which seemingly can’t be broken all that easily. In fact, it seems to become more prevalent every time we see a cycle filled with small Bitcoin price gains, just like the one we are looking at right now. It is uncanny how these patterns keep emerging.
To put this into the numbers most people care about, the Bitcoin price is on the rise. In fact, it rose by 4.4% in the past 24 hours. Any mainstream investors would kill for such gains in that timespan, yet they are striking out more often than not. Do keep in mind this Bitcoin price increase is the result of very low trading volume. Only US$681. 5m worth of BTC has changed hands during this period, which is well below the US$1bn average we see on a very regular basis.
Despite this low trading volume and medium-sized gain, Bitcoin is heading back toward US$2,800 and beyond. The timing of this price momentum is quite significant, as tomorrow is the day on which Bitcoin Cash will – finally – be created. The question is whether or not BCH will take away some of Bitcoin’s market volume. After all, it is not free cash by any stretch of the imagination, although its actual value remains a big question. It is equally possible BCH will not impact the Bitcoin price whatsoever, yet push the combined market cap of the “two bitcoins” well above US$3,000.
Other currencies aren’t doing too well, for the time being. At least the currencies in the top 10, that is, as none of them have gained any value. Ethereum is – once again – down by 3.31% and IOTA managed to lose 5.91% at the same time. All other currencies record losses between 1.332% and 2.83%, which indicates people are once again converting to Bitcoin for the time being. With the fork activating tomorrow, that is not entirely surprising as far as educated cryptocurrency users are concerned.
As one would come to expect, the Bitcoin Dominance Index has adjusted itself once again. With Bitcoin rising and the rest of the market falling behind, the BCI now sits at 51.6%. That is a pretty solid percentage, to say the least, although the trend could reverse quickly once things settle down with Bitcoin Cash. For the time being, Bitcoin remains the undisputed King of the Hill, though, and that situation will remain the same for some time come.
What is even more remarkable is how the Bitcoin price gains offset all cryptocurrency losses as far as the overall market cap is concerned. That is very unusual, yet it goes to show money is seemingly moving around in circles, rather than leaving and entering the cryptocurrency ecosystem as a whole. That would also explain the lower Bitcoin trading volume, although quite a few exchanges have halted trading for the time being. Interesting things will happen in the future, that much is evident.
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