A coup in the market for cryptocurrency. Why bitcoin loses ground

Bitcoin share in the total mass of digital currency collapsed below 51.5%. At the same time, in September the leader of the crypto-torch was 57%

Bitcoin from all sides pushes the leading altars. In the past week Ethereum increased by 10%, XRP – by 22.7% and Bitcoin Cash rose by 54% at the same time. At the same time Bitcoin only added 3.2% in price. Life understood why the leader loses ground. Does the redistribution cause a threat to the crypto market and how great is the chance that the price of Bitcoin is waiting for a new breakthrough?

This fall, bitcoin severely disappointed cryptoinvestors. The market has become accustomed to the high volatility of digital currencies. Accordingly, after Bitcoin amortization to nearly six thousand dollars, many waited for the inevitable price rise. Only the expected start did not follow at the end of September or in October. There are no expected breakthroughs in November. Cryptoinvestors started to get nervous and many seriously consider the problem of transferring money to other cryptoactive assets. The reason was a considerable strengthening of the altcoins.

There is no system for regulating the activity of cryptobirth and the cryptocurrency market as a whole, "said Alexander Brazhnikov, vice president of the Russian Association of Cryptoindustry and Blockchain (RACIB) for the development of security technologies. – In such situations, groups of merchants with large packages can manipulate the speed of cryptocurrency, depending on their specific commercial interests. It can be assumed that after the establishment of a system of control and regulation, strong fluctuations in the market for cryptocurrency will become the exception instead of the rule.

The price of Bitcoin started to fall sharply in the first half of the year, while in the second period it remained at the level of 6-7 thousand dollars. At the same time, other cryptocurrencies have partially restored their positions at the beginning of the year. As the senior analyst of Alpari GK Roman Tkachuk points out, Ripple is now very popular with investors (there was a period where he even came in second place in terms of capitalization at cryptocurrencies, where Ethereum was defeated). In recent months, Bitcoin Cash has shown rapid growth against the background of hard forks (network update), expected on 15 November.

Photo: © Flickr / autumn_seraphim

Photo: © Flickr / autumn_seraphim

"It is not surprising that Bitcoin partially lost its position in the cryptocurrency market against this background, although it remains the most important cryptocurrency", Roman Tkachuk explains. – The reason for the return of demand for bitcoin (with a corresponding appreciation of the exchange rate) could be the consent of ETF funds for bitcoin by the US Securities and Exchange Commission (SEC). This would reduce the speed of Bitcoin in the area of ​​8-10 thousand dollars.

The growth of altcoins was due to speculative sales of Bitcoin Cash. In anticipation of hard forks, many hastened to buy a coin. As the social network analyst for investors of eToro in Russia and the CIS, Mikhail Mashchenko, explains when it became clear that Bitcoin Cash was overheating, speculators decided to switch to other altcoins. The analyst links the growth rate of top-10 coins with rumors about the possible appearance of these coins on the American trading platform Coinbase – one of the world's largest crypts. Investors therefore benefited simply from the situation for short-term profit. According to Mikhail Mashchenko, this should not affect the position of Bitcoin as leader of the crypto market. Moreover, we can expect a correction in the costs of altcoins in the near future. Only because investors who have earned the growth rate sell a risk-taking crypt.

"The last year on the crypto market can be called a year of disappointment", says Oleg Bogdanov, chief analyst at Teletrade Group. – Disappointments above all major institutional investors. They tried to enter this market, but after the practical use of the blockchain mechanism for transactions, they came to the conclusion that this mechanism is not suitable for a modern money turnover. Already in the spring of this year, the volume of operations with cryptocurrencies began to fall sharply. The growth rate of the altcoins, which we have seen over the past month, looks like a simple recovery against the background of a decline of seventy percent during the year. Or, as traders say, "growth in the basement." If the bitcoin interest rate drops below 5.8 thousand dollars, we should expect a further decline to 3800. In order to increase this market, we need real, already large investments that are not there now.

Photo: © Flickr / QuoteInspector

Photo: © Flickr / QuoteInspector

However, not all analysts are so pessimistic. According to the expert from the International Financial Center, Olga Prokhorova, it is not entirely correct to say that Bitcoin is losing ground. Altcoins simply grow more active while the main cryptocurrency is frozen "in standby mode". Bitcoin's share has always been more than 50% since mid-August. At the same time, Olga Prokhorova recalls that market share has increased significantly since May, at around 15%, from 36% to 51%. So bitcoin was and remains an undisputed favorite. According to the analyst, he will not give up his leadership positions for at least a year.

"Bitcoin remains the basis, the guarantee for the stability of the market, which all lenders of the world cryptocurrency look at," says Alexander Ageev, an analyst at FinIst. – Now, as a benchmark object, it occupies an ideal position, its market share should not grow compared to alternative currencies. Bitcoin stays on these positions. The growth of the rest of the market will also contribute to growth. The first cryptocurrency will also have to increase its volume, which means that the price will also increase.

According to Yevgeny Udilov, analyst at the Phoenix Institute for Trading and Investment, the transfer of Bitcoin to Altcoin investments is a temporary phenomenon. If you look at the level of capitalization of the market for cryptocurrency, it has not changed much in three months. At the beginning of November, literally from the first digits, the capital letter started to grow gradually. According to Yevgeny Udilov, this is easily explained by the election of the US Congress. The election of power is always a factor of uncertainty for investors. They try to insure and keep money, not only in their usual dollars or gold, but also in alternative assets. According to Evgeny Udilov, the volatility of Bitcoin is declining rapidly from the second half of this year. In this situation, in his opinion, a new wave of interest in Bitcoin can be expected at any time.

Nina Vazhdayeva

Based on: "Life"