As The Bitcoin Price Plummets, Its Dominance Is On The Rise
Bitcoin has had a terrible month, but not as bad as many other major and minor cryptocurrencies it would seem, with bitcoin's share of the total cryptocurrency capitalization, known as its dominance, moving higher throughout November.
The bitcoin price has fallen some 45% so far this month after rival cryptocurrency, bitcoin cash, split in two due to developers and miners failing to reach an agreement over its future, triggering a cryptocurrency sector-wide sell-off that has caused some to question bitcoin's chances of survival.
Bitcoin's dominance has ticked up over the course of the month, however, from lows of 51% in early November to 53% today—highlighting bitcoin's enduring appeal to investors and cryptocurrency miners.
Bitcoin has this week dropped below $3,500 for the first time in 14 months, according to CoinDesk's price tracker, down around 80% from its peak in December last year and casting a shadow over the hundreds of bitcoin and cryptocurrency startups that have popped up over the last two years.
Elsewhere, amongst the other top five cryptocurrencies, Ripple's XRP is off by 90% from its all-time-high, Ethereum's ether is down by 92%, bitcoin cash 95% lower, while EOS (which peaked in April this year) is down by 85%.
While many of the other major cryptocurrencies have fallen harder from their all-time-highs than bitcoin, it's amongst the minor cryptocurrencies that real rout has happened.
Bitcoin's epic bull run last year, that saw its price soar from under $1,000 at the beginning of 2017 to almost $20,000 towards the end of the year, dragged hundreds of so-called alt coins along with it—with many of them now collapsing entirely.
Though there have been many reports of bitcoin's demise over the last two weeks, the original cryptocurrency is still worth more than it was in the summer of 2017, before many of the alt coins had even been created.
In May of this year, digital tokens outside of the top 10 made up 27% of the total cryptocurrency market capitalization. This has now fallen to just 18%. Bitcoin's dominance touched lows of 32% in January, with ethereum and Ripple's XRP its biggest rivals at 18% and 10% respectively.
Meanwhile, despite bitcoin's massive sell-off, it would appear there is still some appetite for cryptocurrencies amongst institutional investors and the traditional financial services industry.
Bitcoin price bull and renowned venture capital investor Tim Draper, who recently reaffirmed his prediction that the bitcoin price will reach a whopping $250,000 by 2022, has said he expects the entire global economy will eventually pivot to cryptocurrencies, with bitcoin leading the change.
Draper, speaking to Mike Green of Thiel Macro on behalf of investor platform Real Vision on the sidelines of World Crypto Con in Las Vegas earlier this month, predicted that cryptocurrency will eventually make up two-thirds of all the world's currency value.
This morning it has been reported New York exchange operator Nasdaq is moving ahead with a plan to list bitcoin futures, according to Bloomberg, citing unnamed sources.
Nasdaq is betting on sustained interest in bitcoin despite the cryptocurrency’s dramatic plunge this year after first it first weighed the prospect of bitcoin futures around 12 months ago. It wants to allow trading in the first quarter of 2019, Bloomberg reported.
Many have previously pointed to institutional investors and the established financial industry's interest in bitcoin over other major cryptocurrencies (save for Ripple's XRP) as the reason for the alt coin sell-off so far this year.