Bitcoin Dominance Soars, Altcoins Seek Breakout
• Bitcoin’s value has been rising steadily, but altcoins haven’t followed suit.
• Analyst Benjamin Cowen discussed Bitcoin’s behavior in the first half of the year before halvings.
• The total market cap of crypto has stayed the same, with capital simply being reallocated to Bitcoin.
Bitcoin Market Dominance Surges
Bitcoin’s value has been rising steadily over the past few months, but unlike in previous years, altcoins have not seen an equal boost in their prices. Popular analyst Benjamin Cowen recently spoke about this phenomenon on the Wolf of All Streets podcast and suggested that this could be a result of investors reallocating their capital to Bitcoin rather than investing in altcoins.
Altcoins Seek a Breakout
Cowen discussed how Bitcoin usually behaves in the first half of the year before a halving event and highlighted an intriguing detail regarding the market cap – it has stayed roughly at the same spot since August 15th 2020 despite Bitcoin’s large surge in value since then. This indicates that investors are simply shifting their capital from other cryptocurrencies into Bitcoin instead of investing into altcoins. He also warned that despite positive signs leading up to halvings, months after can sometimes turn bearish, so investors should remain cautious when making any investments decisions.
The Impact of Regulatory Clarity
The experts also touched upon potential impact that regulatory clarity may have on markets and how it could open up opportunities for further investment into cryptocurrencies both by institutional and retail investors alike. Cowen suggested that while some countries are still waiting for clear regulations to be put into place, governments are increasingly trying to make things easier for cryptocurrency exchanges by implementing policies such as anti-money laundering (AML) laws and know your customer (KYC) procedures which would help protect traders from fraud and manipulation activities while increasing transparency within markets.
Crypto Adoption Increasing Rapidly
Cowen noted that there is growing demand for cryptocurrencies across all demographics due to its easy accessibility and low cost compared to traditional banking services, which is driving more people towards digital assets every day. He said that digital asset exchanges are now seeing larger volumes as more people enter markets looking to take advantage of price volatility as well as diversifying their portfolios with alternative investments such as crypto funds or tokens offered by companies like Coinbase or Bakkt.
Conclusion
In conclusion, it appears that while altcoins have yet to see a breakout following Bitcoin’s surge in value, there is still hope for them if regulatory clarity is achieved soon which would allow more institutional investors to enter markets without fear of fraud or manipulation activities taking place within exchanges. Additionally, there is growing interest amongst all demographics towards cryptocurrencies thanks to its low cost and easy accessibility compared to traditional banking services which could open up even more opportunities for investment going forward.
